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Accounting question below

1 If a net loss occurs, it appears in the Income Statement credit column and Statement of Retained Earnings debit column. Sel

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Answer #1

Question 1

Answer--- True.

In case of loss credit side of income statement will be less than debit side hence the balancing figure will be written on credit side to account for loss. A loss is shown on debit side of retained earnings since loss reduce retained earnings balance.

Question 2

Correct answer----a. The dividend account is closed to income summery.

The dividend account is actually closed to restrained earnings account instead of income summery account.

All other statements started are correct.

.

Question 3

Answer--- true.

No balance remains in revenue, expense, dividend and income summery after closing entries. All accounts are ultimately closed to retained earnings.

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