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For 2016, NestorCompany had revenues in excess of expenses. Which statement describes Nestor’s closing entries at the end of 2016 (assume there is only one closing entry for both revenue and​ expenses)?

A. Revenues will be​ debited, expenses will be​ credited, and retained earnings will be debited.
B. Revenues will be​ debited, expenses will be​ credited, and retained earnings will be credited.
C. Revenues will be​ credited, expenses will be​ debited, and retained earnings will be credited.
D. Revenues will be​ credited, expenses will be​ debited, and retained earnings will be debited.

Respuesta :

Answer:

Which statement describes Nestor’s closing entries at the end of 2016 (assume there is only one closing entry for both revenue and​ expenses)?

Explanation:

A. Revenues will be​ debited, expenses will be​ credited, and retained earnings will be debited.

Closing entries, also called closing journal entries, are entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts. In other words, the temporary accounts are closed or reset at the end of the year

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