Each of the following accounts is closed to Income Summary except
A) Expenses.
B) Owner's Drawing.
C) Revenues.
D) All of these are closed to Income Summary.

Question

Quizplus · Accepted Answer

Expenses and Revenues are closed to Income Summary to calculate the net income or loss for the period. However, Owner's Drawing is not an expense incurred in generating revenue and is not included in the calculation of net income. Instead, it is closed directly to the owner's equity account to reduce their capital balance.

Each of the Following Accounts Is Closed to Income Summary