Question

Which type of account is always debited during the closing process? Retained earnings Dividends Expense Revenue

Answer 1

Answer:

The correct answer is letter "D": Revenue.

Explanation:

The Revenue Account reflects the revenue received by the company as the result of the sales of the products offered and the assets acquired by the firm during the same period. The revenue account is also known as the equity account and has a credit balance that is to be debited while closing the company's accounting books.

Answer 2

Answer:

Revenue

Explanation:

The closing entries for the following accounts are as follows:

1. Service Revenue A/c Dr XXXXX

                  To Income Summary XXXXX

(Being revenue account closed)

2. Income summary A/c Dr XXXXX

                        To Expenses A/c XXXXX

(Being expenses accounts are closed)

3. Income summary A/c Dr XXXXX

                 To Retained earning XXXXX

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr XXXXX

                To Dividend A/c XXXXX

(Being dividend account is closed)