A Closing Entry Includes A

question 13

Multiple Choice

A closing entry includes a:

• A)debit to Sales Revenue.
• B)credit to Cash.
• C)credit to Accounts Receivable.
• D)debit to Interest Expense.

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Definitions:

Purchase

The action of acquiring goods or services in exchange for money, marking an increase in the buyer's inventory or assets.

Stock Investment

Placing capital into stocks or equity securities of companies to potentially earn returns through dividends or capital gains.

Operating Activity

Transactions and events that are directly related to the primary business operations of a company, such as sales revenue and expense transactions.

Financing Activity

Transactions involved in raising, repaying, or restructuring the capital funding of a company, as reflected in the cash flow statement.