The Entry to Close the Expense Accounts Includes

question 116

Multiple Choice

The entry to close the expense accounts includes:

• A)a debit to Retained Earnings and credits to the respective expense accounts.
• B)a debit to Dividends and credits to the respective expense accounts.
• C)debits to the respective expense accounts and a credit to Retained Earnings.
• D)debits to the respective expense accounts and a credit to Dividends.

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Definitions:

Ordinary Annuity

Like payments executed after every period close throughout an agreed length.

Periodic Payment

Recurrent payments made at regular intervals over a period of time, such as monthly mortgage or rent payments.

Ordinary Annuity

Regular payments of the same amount made at fixed intervals, where interest is added to the total at the end of each period.

Periodic Payment

Payments that are made regularly at set intervals, such as monthly or annually, often seen in loans and annuities.