Answer:
True
Explanation:
The net revenue or net loss would be expressed in the retained earnings account statement.
The computation of the ending retained earning balance is shown below:
The ending balance of retained earning = Opening balance of retained earnings + net income or net loss - cash dividend paid
These are the closing entries which are shown below:
Income summary A/c Dr
To Retained earning
(Being the difference is credited to retained earning)
Retained earnings A/c Dr
To Cash Dividend A/c
(Being dividend account is closed)
