With Closing Entries, You Would Expect to Find All of the Following

question 17

Multiple Choice

With closing entries, you would expect to find all of the following except

• A) debit Unearned Rent; credit Income Summary.
• B) debit Sales Revenue; credit Income Summary.
• C) debit Retained Earnings; credit Dividends.
• D) debit Income Summary; credit Loss on Sale of Land.

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Definitions:

Legal Liabilities

Obligations arising from laws or regulations that a company is required to pay, such as fines, settlements, or judgments.

Sick Pay Payable

A liability account that represents the amount of sick pay owed to employees but has not yet been paid.

Notes Payable

Liabilities representing amounts borrowed by a company that must be repaid, often with interest, as evidenced by a promissory note.

Notes Payable

A financial obligation represented by a written promise to pay a certain amount on a specific future date or dates, typically encompassing loans or credit extended by one party to another.