The account to which revenue and expenses are closed is called:
A)Cash.
B)Retained Earnings.
C)Common Stock.
D)Sales.

Question

Quizplus · Accepted Answer

The account to which revenue and expenses are closed is called Retained Earnings. This account represents the accumulated earnings of a company that have not been distributed as dividends to the shareholders. The closing process involves transferring the balances of revenue and expense accounts to Retained Earnings to determine the net income or loss for the period.

The Account to Which Revenue and Expenses Are Closed Is