What do closing entries accomplish? Zero out the revenues, expenses, and dividends Transfer revenues, expenses, and dividends to the Retained Earnings account Bring the Retained Earnings account to its correct ending balance All of the above

What do closing entries accomplish? Zero out the revenues, expenses, and dividends Transfer revenues, expenses, and dividends to the Retained Earnings account Bring the Retained Earnings account to its correct ending balance All of the above

Name: What do closing entries accomplish?Zero out the revenues, expenses, an
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Description: What do closing entries accomplish?Zero out the revenues, expenses, and dividendsTransfer revenues, expenses, and dividends to the Retained Earnings accountBring the Retained Earnings account to its correct ending balanceAll of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 6Q: Which of these account types (Assets, Liabilities, Equity, Revenue, Expense, Dividend) are debited...

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Similar questions

Which of these accounts is not included in the post-closing trial balance? A. Land B. Notes Payable C. Retained Earnings D. Dividends
Which of these account types (Assets, Liabilities, Equity, Revenue, Expense, Dividend) are debited in the closing entries? Why?
Assume that the first two closing entries have been made and posted. Use the T-accounts provided below to: A. complete the closing entries B. determine the ending balance in the Retained Earnings account
Which of these accounts is included in the post-closing trial balance? A. Sales Revenue B. Salaries Expense C. Retained Earnings D. Dividends
If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accumulated Depreciation B. Buildings C. Depreciation Expense D. Equipment E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies Expense I. Dividends
Qusetion In the closing process of the accounting cycle, the accountant closed the dividends account at year-end by debiting Income Summary and crediting the dividends account. The balance of Income Summary after closing revenue, expenses and dividends are closed to Retained Earnings. What is the effect of these entries on current-year profit and the balance in the equity account(s) at year-end? A: Profit is overstated; balance in the retained earnings account is correct. B: Profit is correct; balance in the retained earnings account is overstated. C: Profit is understated; balance in the share capital account is correct. D: Profit is correct; balance in the share capital account is correct.
Indicate the best answer(s) for each question: Which of the following accounts is not closed to the Income Summary Account at the end of the accounting period? (Identify all of the correct answers). a Unearned Revenue b Dividends c Accumulated Depreciation d Prepaid Insurance
The closing process is necessary in order to Group of answer choices A. ensure that net income or net loss and dividends for the period are closed to retained earnings. B. calculate net income or net loss for an accounting period. C. ensure that all permanent accounts are closed to zero at the end of each accounting period. D. ensure that management is aware of how well the company is operating.
How do I record entry to close revenue and expense accounts to retained earnings, and combine the closing of revenue and expenses into one entry.
Indicate whether a debit or credit is required to close each of the following accounts. Use the sym-bols D if a debit is required, C if a credit is required, and N if the account is not closed at the end of the period.a. Salary Expenseb. Unexpired Insurancec. Consulting Fees Earnedd. Depreciation Expensee. Dividendsf. Retained Earningsg. Interest Revenueh. Accumulated Depreciationi. Income Taxes Expensej. Unearned Revenuek. Income Summary (of a profitable company)l. Income Summary (of an unprofitable company)
Which of the following describes the purpose(s) of closing entries? a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.b. Transfer the balances of temporary accounts (revenues, expenses, and dividends) to Retained Earnings. c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. d. Both b. and c.