Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

True

False

Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

True

False

A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $95,000. During the year, Sales Revenue amounted to $75,000, Cost of Goods Sold was$30,000, and all other expenses totaled $12,000. The company declared and paid $19,000 as dividends. The last step in the closing process would include ________.

A.

a credit to Income Summary for $19,000

B.

a debit to the Retained Earnings account for $33,000

C.

a debit to the Retained Earnings account for $19,000

D.

a debit to Income Summary for $33,000