The Closing Entry Involving a Net Loss Will Include a

question 83

Multiple Choice

The closing entry involving a net loss will include a

• A) Credit to sales revenue
• B) Debit to retained earnings
• C) Credit to dividends
• D) Debit to salaries expense

---

Definitions:

Residual Value

The projected valuation of an asset at the termination of its usability period.

Depreciation Estimates

Projections made regarding the decrease in value of a fixed asset over time, affecting financial statements and tax liabilities.

Residual Value

The anticipated worth of an asset upon reaching the conclusion of its serviceable life.

Double-Declining-Balance

An accelerated method of depreciation which doubles the regular depreciation amount, reducing the value of an asset more quickly in its early years.