The primary purpose of closing entries is to:

1) The primary purpose of closing entries is to: A) Prove the equality of the debit and credit entries in the general journal

Answer

11. Option C: The primary purpose of closing entries is to update the balance of Retained Earnings and prepare revenues, expenses, and dividend accounts for the next period’s transactions. 12. Option A Every journal entry must debit at least one account and credit at least one account. It may not affect both income statement and balance sheet account. It may sometimes increase both accounts and decrease both accounts. It is recorded only in a journal and not in a ledger. 13. The International Accounting Standard Board is responsible for establishing, developing, and publishing the International Financial Reporting Standards Option A 14. The dividend is not an expense. The dividend is the distribution of profits by business to its owners. Option D 15. Option A Revenues are an increase in retained earnings resulting from delivering goods or services to customers. 16. The payment is outstanding as on 31st December is for 4 days. 5 days week payment is $500 4 days payment will be $400 ($500 x 4/5) The amount will be paid after January 5th. As on December 31st, we shall record an adjusting entry for accrued salary
Date Debit Credit
December 31 Salaries expense $          400.00
          Salaries payable $          400.00
To record accrual of salaries

Option D

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