Which of the following statements concerning closing entries is false? -A. Alt t

Question

Which of the following statements concerning closing entries is false? -A. Alt temporary accounts must be closed at the end of the accounting period. B. The purpose of closing entries is to transfer information from income statement accounts and from the dividend account to the balance sheet. C The correct entry to close the dividend account is a debit to Income Summary and a credit to Dividends. D ff the company has a net loss the income summary will be credited at closing and retained earnings will be debited E) Accrued expenses will not be closed at the end of the accounting period.

Explanation / Answer

Correct Answer ---The Correct entry to close the dividend account is a debit to income summery and a credit to dividends

Explanation

Dividend account is closed by debiting Retained earnings and crediting Dividends. Dividend account is a temporary account which needs to be closed at the end of the year.

It is true that Closing entries are done to transfer information from income statement to balance sheet.

Accrues expenses are not closed at the end of the year. Accrues expenses such as wages payable, utilities payable are closed when they are paid in the next accounting period.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.