Question: After closing entries are made, the difference between temporary accounts and owner's capital is best described as which? Owner's Capital has a balance that must
After closing entries are made, the difference between temporary accounts and owner's capital is best described as which? Owner's Capital has a balance that must close out to the Income Summary, whereas temporary accounts do not. Temporary accounts will have a credit balance, whereas Owner's Capital will have a debit balance. Temporary accounts have zero balances, whereas Owner's Capital has a balance that carries forward. Owner's Capital has a zero balance, whereas temporary accounts have balances that carry forward
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