Assuming that expenses exceed revenues,which of the following correctly indicates the structure of the journal entry that is used to close revenue and expense accounts?
A)Debit Retained Earnings,debit Expenses,and credit Revenues.
B)Debit Revenues,debit Retained Earnings,and credit Expenses.
C)Debit Revenues,debit Expenses,and credit Retained Earnings.
D)Debit Expenses,credit Revenues,and credit Retained Earnings.

Question

Quizplus · Accepted Answer

Assuming that expenses exceed revenues,the closing journal entry involves: debiting revenue accounts for the amounts of their credit balances,debiting Retained Earnings for the amount of net loss (excess of expenses over revenues),and crediting expense accounts for the amounts of their debit balances.

Assuming That Expenses Exceed Revenues,which of the Following Correctly Indicates