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An expenses account is closed by a debit to


Question

An expenses account is closed by a debit to

Options

A) an asset account and a credit to the expenses account

B) the expenses account and a credit to an asset account

C) profit and loss account and a credit to the expenses account

D) the expenses account and a credit to profit and loss account

The correct answer is C.

Explanation:

Expense accounts are categories within the business's books that show how much it has spent on its day-to-day running costs. An expenses account is closed by a debit to profit and loss account and a credit to the expenses account.


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Dicussion (1)

  • Expense accounts are categories within the business's books that show how much it has spent on its day-to-day running costs. An expenses account is closed by a debit to profit and loss account and a credit to the expenses account.