Which of the following accounts are closed to the income summary during the month end closing process?
I revenue accounts
II expense accounts
III retained earnings
A)I
B)II
C)III
D)I, II, and III
E)I and II only

Question

Quizplus · Accepted Answer

Revenue and expense accounts are both closed to the income summary during the month-end closing process.
Key Takeaway: Revenue, expense, and capital withdrawal (dividends within a corporation) are temporary accounts that are reset at the end of the accounting period so they will have a zero balance at the start of the next accounting period. This is done by closing entries to transfer temporary accounts to permanent accounts.

Which of the Following Accounts Are Closed to the Income