There are three closing entries. The first one is to close ____, the second one is to close ____, and the last one is to close ____.
A) revenues, expenses, dividends
B) expenses, assets, capital stock
C) capital stock, dividends, assets
D) dividends, expenses, assets

Question

Quizplus · Accepted Answer

The first closing entry is to close revenues to the retained earnings account, the second is to close expenses to the retained earnings account, and the last one is to close dividends to the retained earnings account. This is the standard practice in accounting to bring all temporary accounts to zero at the end of the period and transfer their respective balances to the retained earnings account. The other choices do not reflect this standard practice.

There Are Three Closing Entries