Assuming That Revenues Exceed Expenses,which of the Following Correctly Indicates

question 81

Multiple Choice

Assuming that revenues exceed expenses,which of the following correctly indicates the structure of the journal entry that is used to close revenue and expense accounts?

• A) Debit Retained Earnings, credit Expenses, and credit Revenues
• B) Debit Revenues, credit Expenses, and credit Retained Earnings
• C) Debit Revenues, debit Expenses, and credit Retained Earnings
• D) Debit Expenses, credit Revenues, and credit Retained Earnings

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Definitions:

Guarantor

A party that agrees to be responsible for the debt or obligation of another if the original obligor fails to meet their obligations.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Deed of Trust

A legal document in some states that involves a borrower, lender, and a trustee, securing a real estate transaction as collateral for a loan.

Surety

A person or entity that takes responsibility for the performance of another's obligations, such as fulfilling the terms of a contract or repaying a loan.