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11) Assume that an organization's operations result in a net profit for the year. When the books are closed, what is the accounting effect of

11) Assume that an organization's operations result in a net profit for the year. When the books are closed, what is the accounting effect of the journal entry that closes out the net profit?

a. It is subtracted from the liabilities.

b. It is added to the opening balance of owner's equity.

c. It is added to the cash balance.

d. It is subtracted from the cash balance.

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