Question

Which type of account is always credited during the closing process?

A) Common Stock
B) Revenue
C) Retained Earnings
D) Expense

Answer 1

The Retained Earnings account is always credited during the closing process in accounting.

Step-by-step explanation:

The correct answer is C) Retained Earnings. During the closing process, the Retained Earnings account is always credited. This account represents the accumulated profits, or earnings, that a company has retained to reinvest in its operations. At the end of the accounting period, the company closes its revenue and expense accounts into the Retained Earnings account to determine the net income or loss for that period.