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If the sum of the Ending Balance(s) in the revenue account(s) is greater than the sum of the Ending Balances in the expense accounts, then Retained Earnings will increase as a result of the closing entries.a) trueb) false

Respuesta :

Answer:

True

Explanation:

The closing entries are as follows            

1. . Sales Revenue A/c Dr XXXXX

          To Income Summary A/c XXXXX

(Being revenue account closed)

2.  Income Summary A/c XXXXX

             To Expenses A/c XXXXX

(Being the expenses account are closed)

3. Income summary A/c Dr XXXXX

           To Retained earning A/c XXXXX

(Being the difference is credited to retained earning i.e we called profit )

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