There Are Four Closing Entries

question 51

Multiple Choice

There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.

• A) revenues, expenses, income summary, dividends
• B) expenses, assets, income summary, capital stock
• C) retained earnings, dividends, income summary, assets
• D) dividends, income summary, expenses, revenues

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Definitions:

Canadian GAAP

Generally Accepted Accounting Principles in Canada, comprising standards for financial reporting and accounting practices in Canadian entities.

Chief Operating Decision Maker

The individual or group within an organization primarily responsible for deciding how resources are allocated and assessing performance of operating segments.

Discrete Financial Information

Financial data and metrics that are specific, distinct, and separate from other information, often used for analysis or decision-making in isolated instances.

Reportable Income

Income that must be declared for tax purposes, including earnings from employment, investments, and other sources.