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gnment/takeAssign nmentMando?invoker = assignments&takeAssignmentSessionLocator assignment . take&inprogress to watch the Tell Me More Learning Objective 3 video and then answer the questions below. i. All of the following accounts/account types are dlosed at the end of the accounting period EXCEPT a. Revenues c. Dividends. 2. Which of the following accounts will NOT appear on the post-dlosing trial balance? a. Fees Earned b. Cash c. Accounts Receivable d. Accounts Payable 3. The journal entry required to close the dividends account includes a. a debit to income Summary and a credit to Dividends. b, a debit to Retained Earnings and a credit to Dividends c. a debit to Retained Earnings and a credit to Cash d. None of these choices are correct. check My Work 40 4 5 6 8 3Explanation / Answer
1. Correct Answer - d. Retained Earnings
Reason - All the nominal accounts (revenue and expenses) are closed at the end of a particular period and all real accounts (asset, liability and euity funds) are never closed in a particular period and carried forward to the next period. Here, Revenues, exenses and dividends are nominal accounts, thus need to be closed whereas reatined earnings are the part of the equit funds ths a real accounts and is not closed at he end of the accounting period.
2. Correct Answer - a. Fees earned
Reason - Post closong trial balance does not contain any temporary or nominal account like revenue, expense, gains and losses as they have been already closed. It contains list of all permanent or real accounts. Here, cash, accounts receivable and account payable are real accounts thus will appear in post closong trail balance whereas fees earned is an income thus a nominal account so, will not appear on the post closing trail balance.
3. Correct answer - b. a debit to Retained earnings and a credit to dividends
Reason - Dividend which an expense nature for a company has a debit balance. At the time of closing this account we charge the amount of dividends to the retained earnings. So, while closing dividends account it is credited (closed) and reatined earnings is debited (decrease in retained earnings due to payment of dividends).
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