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Asked by Chloe Francis on May 20, 2024

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Closing entries result in the Dividends account being transferred into net income or net loss for the period ending.

Dividends Account

An account that records the dividends declared by a corporation to be distributed to its shareholders.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenues.

Closing Entries

These are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts, hence preparing the books for the next period.

  • Realize the contributions and techniques involved in adjusting and closing entries as part of the accounting cycle.
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MJ
Mariahbay JonesMay 23, 2024
Final Answer :
False
Explanation :
Closing entries transfer the balances of temporary accounts (like Dividends, Revenues, and Expenses) to Retained Earnings, not directly into net income or net loss. Net income or loss is calculated before this process and affects the Retained Earnings balance.

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