Asked by Paulina Martinez on Jun 14, 2024
Verified
Which of the following accounts should be closed to Retained Earnings at the end of the fiscal year?
A) Service Revenue
B) Equipment
C) Prepaid Insurance
D) Unearned Rent
Retained Earnings
The accumulated net income of a company that is retained and reinvested in the business rather than paid out as dividends.
Service Revenue
Income earned by a company for providing services rather than selling physical goods.
Equipment
Equipment consists of the fixed assets a company uses in its operational activities to produce goods or provide services, not intended for sale.
- Implement the method of modifying and concluding entries for income, expenditure, and dividends accounts.
Verified Answer
Learning Objectives
- Implement the method of modifying and concluding entries for income, expenditure, and dividends accounts.
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