Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 3 - The Accounting Information System - Questions - Page 133: 10c

Answer

A balance is present before closing while there is no balance after closing.

Work Step by Step

The credit balances in the revenue account before closing is transferred to the income summary after closing, therefore leaving the account balanced.
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