The Entry to Close Expense Account(s)

question 30

Multiple Choice

The entry to close expense account(s) :

• A)increases total assets.
• B)decreases total assets.
• C)decreases retained earnings.
• D)increases retained earnings.

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Definitions:

Issuance of Debt

The process by which a company borrows money through the sale of bonds or taking out loans, creating a liability that must be repaid in the future.

Retirement of Debt

The process of paying off debt obligations or securities over time through systematic repayments or a lump-sum payment.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Operating Income

Income generated from regular business operations, excluding expenses and revenues from non-operating activities.