Income statement accounts are zeroed out during the year end process.
When completing the Post Revenue & Expenses process, all revenue and expense accounts with balances are zeroed out and the balances move to the fund balance account. Once the Roll Beginning Balances process has been completed, the ending balances are posted to the beginning balance of the next year(s). Asset and liability accounts do not zero out. A manual Journal Entry batch would need to be created to zero the balances for asset and liability accounts.