Question

In preparing closing entries Select one: a. the retained earnings account will be debited if there is net income for the period b. each expense account will be credited c. each revenue account will be credited d. the dividends account will be debited

Answer 1

Answer:

The correct answer is letter "B": each expense account will be credited.

Explanation:

Closing entries is the accounting method by which temporary accounts are closed by the end of the year so the company will start with a clean sheet the following period. By doing this the revenues and gain accounts are debited, the dividend or withdrawal accounts are credited, and the expenses and losses accounts are credited. In case there is income, it is debited to the income summary.