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Question - Company A's accounting period goes from January 1 through December 31. Which of the following describes the difference between the trial balance on December 31, 2013 and the trial balance on January 1, 2014?
The trial balance on January 1, 2014 does not balance because all nominal accounts were reset in the closing process.
The trial balance on January 1, 2014 does not balance because the company has not yet earned any income for the period.
The trial balance on January 1, 2014 shows no balance in all nominal accounts because they were closed to retained earnings in the closing process.
The trial balance on January 1, 2014 shows no balance in all accounts because the accounting books were reset in the closing process.
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