Two Types of Closing Journal Entries Are Posted to Retained

question 15

Multiple Choice

Two types of closing journal entries are posted to retained earnings at year-end.These are entries to:

• A)transfer revenues and expenses to retained earnings.
• B)transfer assets and liabilities to retained earnings.
• C)transfer net income (or loss)and dividends declared to retained earnings.
• D)close permanent and temporary accounts.

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Definitions:

Office Equipment

Tangible items used in an office environment for operations, including computers, printers, and furniture, often subject to depreciation.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements.

Error Detection

A process or technique used in computing and communications to identify mistakes or inaccuracies in data transmission or processing.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that total debits equal total credits.