Each of the Following Accounts Is Closed to Income Summary

question 79

Multiple Choice

Each of the following accounts is closed to Income Summary except

• A) Expenses.
• B) Dividends.
• C) Revenues.
• D) All of these answer choices are correct.

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Definitions:

Restriction/Appropriation

The limitation of retained earnings distribution specified by management or shareholders, often for specific purposes like future investments or debt repayment.

Stockholders' Equity

Refers to the residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.

Par Common Stock

Common stock issued with a nominal value per share, which represents the minimum legal capital that must be paid per share.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.