Which of the Statements About Closing the Accounts Is NOT

question 43

Multiple Choice

Which of the statements about closing the accounts is NOT true?

• A) Revenue accounts are debited.
• B) A net profit is credited to the retained profits account.
• C) Expense accounts are credited.
• D) Dividends received are credited.

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Definitions:

Wage Bracket

A range or category of income levels used to calculate tax withholdings or determine pay scales based on earnings.

Withholding Table

A chart or table used by employers to determine the amount of tax to withhold from an employee's paycheck based on earnings and tax status.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate over a specified period.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.