when a company prepares closing entries, which one of the following is not a correct closing entry?\ndebit…

when a company prepares closing entries, which one of the following is not a correct closing entry?\ndebit retained earnings; credit salaries expense\ndebit dividends; credit retained earnings\ndebit service revenue; credit retained earnings\nall of the other answers are correct

when a company prepares closing entries, which one of the following is not a correct closing entry?\ndebit retained earnings; credit salaries expense\ndebit dividends; credit retained earnings\ndebit service revenue; credit retained earnings\nall of the other answers are correct

Answer

Answer:

A. Debit Retained Earnings; credit Salaries Expense

Brief Explanations:

Closing entries transfer revenue, expense, and dividend account balances to retained earnings. Salaries expense is closed by debiting income - summary (or similar closing account) and crediting salaries expense, not by debiting retained earnings. Dividends are closed by debiting retained earnings and crediting dividends, and service revenue is closed by debiting service revenue and crediting retained earnings.