There are two closing entries. The first one is to close revenues and expenses to _________, and the second one is to close _________ to Retained Earnings.
A)Retained Earnings; Dividends
B)Dividends; Retained Earnings
C)Retained Earnings; Common Stock
D)Dividends; Common Stock

Question

Quizplus · Accepted Answer

The first closing entry involves transferring the balances of all revenue and expense accounts to Retained Earnings to reflect the net income or loss for the period. The second closing entry is to close Dividends to Retained Earnings, which adjusts the Retained Earnings for any dividends paid out to shareholders.

There Are Two Closing Entries