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:

Four-Firm Concentration Ratio

A metric assessing the concentration of market power by adding the market shares of the four largest firms in an industry.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy entry and exit, leading to price-taking behavior.

Pure Monopoly

A market structure where a single seller exclusively provides a product or service with no close substitutes, controlling the entire market supply.

Approximates

Nearly close or similar to something, indicating an estimation or a closely similar value to the actual.