With regards to the Dividends Payable and Dividends accounts,one of the closing entries required at year end,includes a:
A)credit to Retained Earnings.
B)credit to Dividends Payable.
C)debit to Retained Earnings.
D)debit to Dividends Payable.

Question

Quizplus · Accepted Answer

The dividend is accounted for by increasing Dividends Payable with a credit and increasing a temporary account called Dividends with a debit.The Dividends account is closed by crediting that account and debiting Retained Earnings.

With Regards to the Dividends Payable and Dividends Accounts,one of the Closing