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Which of the following statements is correct? a) The most efficient way to accomplish closing entries is to credit the income summary account for total revenues and debit the income summary account for total expenses. b) In preparing closing entries, the retained earnings account will be debited if there is net income for the period. c) The most efficient way to accomplish closing entries is to credit the dividends balance directly to the income summary account. d) The closing entry process consists of closing out the retained earnings account. e) The closing entry process consists of closing all asset and liability accounts.
Which of the following statements is correct? a) The most efficient way to accomplish closing entries is to credit the income summary account for total revenues and debit the income summary account for total expenses. b) In preparing closing entries, the retained earnings account will be debited if there is net income for the period. c) The most efficient way to accomplish closing entries is to credit the dividends balance directly to the income summary account. d) The closing entry process consists of closing out the retained earnings account. e) The closing entry process consists of closing all asset and liability accounts.
Final answer:The correct statement is that in preparingclosing entries, the retained earnings account will be debited if there is net income for theperiod.Explanation:The correct statement among the options provided is b) In preparingclosing entries, the retained earnings account will be debited if there is net income for theperiod.Closing entries are made at the end of anaccounting periodto transfer the balances of temporary accounts, including revenues, expenses, and dividends, to the permanent account of Retained Earnings.If there is net income for the period, the Retained Earnings account will be debited to increase the balance, reflecting the accumulated profits. Conversely, if there is a net loss, the Retained Earnings account would be credited to reduce the balance.Learn more aboutClosing entrieshere:brainly.com/question/33926044#SPJ11...