Question

If the sum of the Ending Balance(s) in the revenue account(s) is greater than the sum of the Ending Balances in the expense accounts, then Retained Earnings will increase as a result of the closing entries.a) trueb) false

Answer 1

Answer:

The answer is true.

Explanation:

Retained Earnings are profit not distributed to shareholders inform of dividends. Retained earnings are adjusted a record or an entry impacts revenue or expense account.

If the sum of the Ending balance(s) in the revenue account(s) is greater than the sum of the ending balances in the expense accounts, then retained earnings, this means the net inflow is positive and this remaining sum goes into the retained earnings.