After Preparing and Posting the Closing Entries for Revenues and Expenses

question 107

Multiple Choice

After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be:

• A)Debit Dividends $33,000; credit Income Summary $33,000.
• B)Debit Income Summary $33,000; credit Dividends $33,000.
• C)Debit Income Summary $33,000; credit Retained Earnings $33,000.
• D)Debit Retained Earnings $33,000; credit Income Summary $33,000.
• E)Credit Retained Earnings $33,000; debit Dividends $33,000.

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Definitions:

Statement of Cash Flows

A financial report detailing the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.