Which of the following entries would be made to close a dividends account?
A)Credit retained earnings
B)Debit retained earnings
C)Debit revenue
D)Debit depreciation expense
E)Debit cash

Question

Quizplus · Accepted Answer

To close a dividends account, a debit entry would be made to retained earnings.
Key Takeaway: Paying dividends will reduce retained earnings. Because retained earnings carries a credit balance, the debit entry will reduce the account.

Which of the Following Entries Would Be Made to Close