Which of the following is not a correct statement?
A)Expense accounts are closed with credits.
B)Revenue accounts are closed with debits.
C)The Dividends account is closed with a credit.
D)The Retained Earnings account is closed with a debit.

Question

Quizplus · Accepted Answer

The first closing entry includes a debit to each revenue account for the amount of its credit balance,a credit to each expense account for the amount of its debit balance,and the difference is recorded in Retained Earnings.The second closing entry includes a credit to the Dividends account for the amount of its debit balance and a debit to Retained Earnings for the same amount.The Retained Earnings is a permanent account;as such,it is not closed.

Which of the Following Is Not a Correct Statement