Which of the following accounts will be closed by crediting the Income summary account?
A) Service revenue
B) Depreciation expense
C) Accounts payable
D) Accumulated depreciation

Question

Quizplus · Accepted Answer

The Income summary account is used to transfer the net income or loss to the retained earnings account at the end of the accounting period. The Service revenue account is a temporary account that records revenue for services performed during the period, and its balance needs to be closed out to transfer the revenue to the Income summary account. Therefore, closing the Service revenue account by crediting the Income summary account is the correct choice.

Depreciation expense, Accounts payable, and Accumulated depreciation are not closed by crediting the Income summary account. Depreciation expense is an expense account that is closed by debiting the Income summary account. Accounts payable is a liability account that is not closed since it is an ongoing account that carries a balance from period to period. Accumulated depreciation is a contra-asset account which goes on accumulating until depreciation expenses are recorded. It is not a revenue or expense account, and therefore, not closed at the end of the period.

Which of the Following Accounts Will Be Closed by Crediting