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Assume that a company has prepared and posted its closing entries. Which of the following statements...

Assume that a company has prepared and posted its closing entries. Which of the following statements is true?a. All revenue accounts will have zero balances b. All expense accounts will have zero balances c. All asset and liability accounts will have zero balances d. All revenues accounts, expense accounts, and the dividends account will have zero balances.

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Answer #1

Closing entry will close all the temporary accounts, such as revenue accounts, expenses account and dividend account, and bring these accounts balances to zero.

Assets and liabilities are permanent accounts, it cannot be closed using closing entries, thus assets and liabilities accounts will not have zero balances.

Therefore, the true statement is d. All revenues accounts, all expenses accounts, and dividend account will have zero balance.

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