The most efficient way to accomplish closing entries is to
A) credit the income summary account for each revenue account balance.
B) debit the income summary account for each expense account balance.
C) credit the dividends balance directly to the income summary account.
D) credit the income summary account for total revenues and debit the income summary account for total expenses.

Question

Quizplus · Accepted Answer

The most efficient way to accomplish closing entries is to credit the income summary account for total revenues and debit the income summary account for total expenses. This summarizes the revenue and expenses of that period, resulting in a net profit or loss. This method simplifies the recording process and provides a clear picture of the financial performance for the period.

The Most Efficient Way to Accomplish Closing Entries Is to