When preparing closing journal entries, the item Salaries expense is closed:
A) directly to the Retained earnings account.
B) directly to the Accumulated expenses account.
C) to the Profit and loss summary account.
D) to the Dividends paid account.

Question

Quizplus · Accepted Answer

Revenue and expense accounts are closed to the Profit and loss summary account. The balance in the Profit and loss summary account is then closed to the Retained earnings account. The Dividends paid account is closed to the Retained earnings account.

When Preparing Closing Journal Entries, the Item Salaries Expense Is