Closing Entries Transfer the Revenue, Expense, and Dividends Balances To

question 88

Multiple Choice

Closing entries transfer the revenue, expense, and dividends balances to:

• A)retained earnings.
• B)permanent accounts.
• C)temporary accounts.
• D)none of the above.

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Definitions:

Drawer

In the context of banking and checks, the individual or entity that writes and signs a check, directing a bank to pay the stated amount.

Drawee

The entity, often a bank, on which a check or draft is drawn and is responsible for paying the amount specified.

Depositary Bank

A financial institution that holds and manages the securities of a depositor, facilitating the exchange of securities and related transactions.

Payor Bank

A bank that is responsible for paying a check or draft on behalf of its client.