Which of the following is true about closing the books of a corporation?
A) Expenses are closed to the Expense Summary account.
B) Only revenues are closed to the Income Summary account.
C) Revenues and expenses are closed to the Income Summary account.
D) Revenues, expenses, and the Dividends account are closed to the Income Summary account.

Question

Quizplus · Accepted Answer

Revenues and expenses are closed to the Income Summary account as part of the process to prepare the company for the next accounting period. This step helps in determining the net income or loss for the period.

Which of the Following Is True About Closing the Books