Question

There are two closing entries. The first one is to close _____; the second one is to close _____. a.the drawing account, revenues b.revenues and expenses, the drawing account c.revenues, expenses and the drawing account d.revenues, expenses

Answer 1

Answer:

b.revenues and expenses, the drawing account

Explanation:

Closing entries are placed in order to close all the temporary accounts. In First closing entry we close all the income and expenses accounts and in second entry we close the drawing account. Drawing account show the amount of cash or resources of the business which is personally used by the owner in the period only. It needs to be closed at the year end like income and expenses accounts.