Q4TI_5
Question
For each account listed, identify whether the account would appear on the post-closing trial balance. Indicate either yes or no.
20. Retained Earnings
Step-by-Step Solution
Verified Answer
YES
1Step-by-Step-Solution Step 1: Explanation on Post Closing Trial Balance
Post closing trial balance is prepared after recording the closing entries. It only reports the permanent account of the business.
2Step 2: Explanation on Retained Earnings
Retained earnings indicates the accumulated profits of the previous years. It is a permanent account, hence reported in post closing trial balance, and also reported in balance sheet under equity section.
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