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:

Natural Resources

Raw materials and resources provided by nature without human intervention, crucial for economic production, such as minerals, forests, and water.

Base Year

The year with which other years are compared when constructing an index; the index equals 100 in the base year.

Price Index

A statistical measure that shows changes in the price level of a basket of goods and services over time, indicating the cost of living or inflation rate.

GDP Price Index

A comprehensive inflation measure of all goods and services included in the gross domestic product.