Saturday, October 10, 2020

When a company prepares closing entries, which one of the following is NOT a correct closing entry?

When a company prepares closing entries, which one of the following is NOT a correct closing entry?


A) Debit Retained Earnings; credit Salaries Expense.

B) Debit Dividends; credit Retained Earnings.

C) Debit Service Revenue; credit Retained Earnings.

D) All of the other answers are incorrect.


Answer: B

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