The Closing Entry for Expenses Includes

question 95

Multiple Choice

The closing entry for expenses includes:

• A)A debit to Dividends and a credit to all expense accounts.
• B)A debit to Retained Earnings and a credit to all expense accounts.
• C)A debit to Revenues and a credit to Retained Earnings.
• D)A debit to Revenues and a credit to all expense accounts.

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Definitions:

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

Superior Returns

Financial returns that exceed those of a benchmark or average over the same period.

Frequent Trading

Frequent trading involves actively buying and selling securities, often several times within a single trading session, to capitalize on short-term market movements.

Inferior Returns

Returns on an investment that are lower than the benchmark or expected returns, often indicating underperformance.