The Entry to Close Service Revenue Includes a Debit To

question 26

Multiple Choice

The entry to close Service Revenue includes a debit to:

• A)Retained Earnings and a credit to Service Revenue.
• B)Service Revenue and a credit to Retained Earnings.
• C)Service Revenue and a credit to Stockholders' Equity.
• D)Service Revenue and a credit to Net Income.

---

Definitions:

Accounting Practices

These are methodologies and standards used by accountants to track and report financial information.

Treasury Stock Transactions

Activities involving the buying back or reissuing of a company's own shares from the marketplace.

Retained Earnings

Retained earnings represent the cumulative amount of net income that a company has reinvested into the business rather than distributed to shareholders as dividends.

Fair Value Method

An accounting approach that measures and reports certain assets and liabilities at their estimated current market values.