A closing entry includes a:

Name: A closing entry includes a:
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Question

Quizplus · Accepted Answer

The first closing entry debits each revenue account for the amount of its credit balance,credits each expense account for the amount of its debit balance,and records the difference in Retained Earnings.The second closing entry credits the Dividends account for the amount of its debit balance and debits Retained Earnings for the same amount.Assets (such as Cash and Accounts Receivable)and liabilities are not closed at the end of the period.

A Closing Entry Includes A