after the closing entries are prepared and posted:\n\na. the temporary accounts will have debit…

after the closing entries are prepared and posted:\n\na. the temporary accounts will have debit balances.\nb. all liability accounts will have a zero balance.\nc. all asset accounts will have a zero balance.\nd. the retained earnings account will have the correct ending balance.

after the closing entries are prepared and posted:\n\na. the temporary accounts will have debit balances.\nb. all liability accounts will have a zero balance.\nc. all asset accounts will have a zero balance.\nd. the retained earnings account will have the correct ending balance.

Answer

Brief Explanations:

  • Option A: Temporary accounts (revenue, expense, dividend) are closed (zero - balanced) after closing entries, not left with debit balances.
  • Option B: Liability accounts are permanent accounts and do not have zero balances after closing entries.
  • Option C: Asset accounts are permanent accounts and do not have zero balances after closing entries.
  • Option D: Closing entries transfer net income (or loss) and dividends to the Retained Earnings account, so it will have the correct ending balance.

Answer:

D. the Retained Earnings account will have the correct ending balance.