The Closing Entry for the Salaries Expense Account Includes a Debit

question 80

Multiple Choice

The closing entry for the Salaries Expense account includes a debit to:

• A)Salaries Expense and a credit to Retained Earnings.
• B)Salaries Expense and a credit to Net Income.
• C)Retained Earnings and a credit to Salaries Expense.
• D)Net Income and a credit to Salaries Expense.

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Definitions:

Seal

A device or symbol used to authenticate documents as genuine or to signify approval or ratification.

Consideration

A concept in contract law, referring to something of value exchanged between parties as part of an agreement.

Gratuitous Promise

A voluntary promise or agreement without consideration, where the promisor is not legally bound to fulfill the promise.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws, common in many English-speaking countries.