The closing entry for expense accounts includes a debit to Retained Earnings and a credit to all expense accounts.

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This statement is true. The purpose of the closing entry for expense accounts is to transfer the balance of these accounts to Retained Earnings, which is a permanent account in the equity section of the balance sheet. This process resets the income statement accounts to zero for the next accounting period.

The Closing Entry for Expense Accounts Includes a Debit to Retained