Closing entries transfer the balances of revenue, expense, and dividends accounts to which account?

Question

Quizplus · Accepted Answer

The balances of revenue and expense accounts are transferred to Retained Earnings, while the balance of Dividends account is also transferred to Retained Earnings, but as a negative amount. This is done in order to close the temporary accounts and update the permanent account of Retained Earnings with the net income or loss of the period. The other options (A, B, and C) are not affected by the closing entries.

Closing Entries Transfer the Balances of Revenue, Expense, and Dividends