Magnum Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. Which of the following choices reflects the effect of closing entries on Magnum's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Magnum Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. Which of the following choices reflects the effect of closing entries on Magnum's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Closing entries are made after financial statements have been prepare

Magnum Corporation Earned Net Income of $32,000 and Paid Cash