Which of the following describes the correct sequence of year-end closing entries?
A)Close Revenues to Income summary;close Expenses to Income summary;close Income summary to Retained earnings.
B)Close Expenses to Income summary;close Revenues to Income summary;close Income summary to Retained earnings.
C)Close Revenues to Retained earnings;close Expenses to Retained earnings;close Income summary to Retained earnings.
D)Close Revenues to Income summary;close Income summary to Retained earnings;close Expenses to Retained earnings.

Question

Quizplus · Accepted Answer

The correct sequence is to first close Revenues to Income Summary, then close Expenses to Income Summary, and finally close Income Summary to Retained Earnings.

Which of the Following Describes the Correct Sequence of Year-End