What Is the Correct Closing Entry for the Bank Account

question 64

Multiple Choice

What is the correct closing entry for the bank account?

• A) No closing entry is required
• B) Debit owner's capital account; credit bank
• C) Debit bank; credit owner's capital account
• D) Debit profit or loss summary account; credit bank

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Definitions:

Government

The governing body of a nation, state, or community, responsible for the direction and administration of public policies, the economy, and public services.

New Businesses

Entrepreneurial ventures that involve the inception and operation of new enterprise initiatives, targeting unique market opportunities.

Five-Year Mark

A significant milestone indicating the completion of five years of operation, often used to assess a business's early success or growth.

Commercial Banks

Financial institutions that offer a wide range of banking services to individuals and businesses, including deposit accounts, loans, and other financial products.