Which of the Following Is a Possible Closing Entry

question 141

Multiple Choice

Which of the following is a possible closing entry?

• A)Debit Cash,credit Service Revenue.
• B)Debit Cash,credit Retained Earnings.
• C)Debit Service Revenue,credit Retained Earnings.
• D)Debit Dividends,credit Retained Earnings.

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Definitions:

Construction Period Interest

Interest expense incurred during the construction of a long-term asset, which can be capitalized and added to the asset's cost basis.

IFRS Guidelines

The set of international accounting standards and principles that guide how financial statements should be prepared and disclosed.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount recorded on the balance sheet.

Input Market

The marketplace where resources or raw materials that a company uses to produce its products are bought and sold.