Question

After the closing entries are posted to the accounts, all temporary accounts:

a.Have zero balances.
b.Have balances equal to the amounts shown in the unadjusted trial balance.
c.Have balances equal to the amounts shown in the adjusted trial balance.
d.Are open.

Answer 1

After the closing entries are made, all temporary accounts have zero balances, clearing the way for a fresh recording of transactions in the new accounting period.

Step-by-step explanation:

The main answer to the question of what happens to temporary accounts after closing entries are posted is: a. Have zero balances.Explanation: In accounting, temporary accounts, such as revenues, expenses, and dividends, are reset to a zero balance at the end of an accounting period after the closing entries are made. This process is done to start the new accounting period afresh, as these accounts only track the financial activity for a specific period. Permanent accounts like assets, liabilities, and equity, on the other hand, carry their ending balances into the next accounting period.In conclusion, after closing entries are posted, all temporary accounts will have zero balances, ensuring that the next accounting period begins with a clean slate for recording the new period's revenues, expenses, and other temporary account transactions.