Asset and liability accounts are closed to the Income summary account.

Name: Asset and liability accounts are closed to the Income summary account.
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Question

Quizplus · Accepted Answer

Asset and liability accounts are not closed to the Income Summary account; only revenue and expense accounts are closed to the Income Summary account to calculate the net income or loss for the period. Asset and liability accounts are permanent accounts and are not closed at the end of the accounting period.

Asset and Liability Accounts Are Closed to the Income Summary