The closing entry required to reset the dividends account for the next accounting period includes a debit to dividends and a credit to retained earnings.

Question

Quizplus · Accepted Answer

The correct closing entry to reset the dividends account for the next accounting period includes a debit to retained earnings and a credit to dividends, effectively transferring the dividend amount out of retained earnings to close out the dividends account.

The Closing Entry Required to Reset the Dividends Account for the Next