The Closing Entry Made for Dividends Would Include

question 104

Multiple Choice

The closing entry made for dividends would include:

• A) a debit to Dividends and a credit to net income
• B) a debit to Retained Earnings and a credit to Dividends
• C) a debit to net income and a credit to Dividends
• D) a debit to Dividends and a credit to Retained Earnings

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Definitions:

Wage Rate

the standard amount of compensation given for labor services per unit of time, often expressed per hour or year.

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments over time, often used in contexts like settlements or pensions.

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and bonuses.

Budget Line

A graphical depiction in economics that shows all possible combinations of two goods that can be purchased with a fixed amount of income.