The Correct Accounting Entry to Create a Reserve Is

question 60

Multiple Choice

The correct accounting entry to create a reserve is:

• A) debit reserve; credit retained earnings.
• B) debit retained earnings; credit reserve.
• C) debit profit and loss summary account; credit reserve.
• D) debit expense; credit reserve.

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Definitions:

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Imagined Loss

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Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

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