Essay
Answer each of the following questions (a-c)with a separate short paragraph per question.
(a)What is the difference between a real account and a nominal account? Give an example of each type of account.Why is this distinction important for the closing process?
(b)What two purposes are served in making closing entries?
(c)Why is the Dividends account closed directly to Retained Earnings rather than to the Income Summary account?
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(a)Balance sheet accounts are called rea...View Answer
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