Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?
A) Salaries Expense
B) Fees Earned
C) Utilities Expense
D) Withdrawals

Question

Quizplus · Accepted Answer

Withdrawals (or drawings) are not closed to the Income Summary account. Instead, they are directly closed to the owner's capital account because they represent amounts taken out of the business by the owner, not expenses or revenues of the business.

Which of the Following Accounts Should NOT Be Closed to Income