In the adjusted trial balance, the balance of the Retained Earnings account is its balance at the end of the accounting period-the balance after all revenue, expense, and dividend transactions. True / False.

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Business

Brenton Powell

28 January, 23:12

In the adjusted trial balance, the balance of the Retained Earnings account is its balance at the end of the accounting period-the balance after all revenue, expense, and dividend transactions. True / False.

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Lorenzo Pruitt · Answer 1

False.

Explanation:

As we know that the adjusting trial balance is prepared after passing the adjusting entries.

Moreover, the debit column of the trial balance and the credit column of the trial balance should be equal and matched.

Plus the revenue, expense, gain, loss are the temporary account which is not be considered as they are closed.

So, the balance of the retained earnings would be the same as the beginning balance.