For a merchandising company all accounts that affect the determination of income are closed to the Income Summary account.

Name: For a merchandising company all accounts that affect the determination of income are closed to the Income Summary account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is the correct method of closing entries for a merchandising company. All revenue, cost of goods sold, and expense accounts are closed to the Income Summary account to determine the net income for the period.

For a Merchandising Company All Accounts That Affect the Determination