The Closing Entry for Expense Accounts Includes a Debit to Retained

question 119

True/False

The closing entry for expense accounts includes a debit to Retained Earnings and a credit to all expense accounts.

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Definitions:

Dividends Paid

Monetary payments disbursed to shareholders out of a corporation's earnings, reflecting the shareholders' share in the profit.

New Share Issues

The process of offering additional shares of a company to the public or existing shareholders to raise capital.

AASB 101

An accounting standard that specifies the requirements for the presentation of financial statements, ensuring their comparability both with the entity's financial statements of previous periods and with those of other entities.

Annually

Occurring once every year or relating to a period of one year.