In the closing process, all the revenue and expense accounts are transferred to a clearing or suspense account called
A) Other Comprehensive Income.
B) Common Shares.
C) Retained Earnings.
D) Income Summary.

Question

Quizplus · Accepted Answer

In the closing process, all the revenue and expense accounts are transferred to a clearing or suspense account called Income Summary. This is done to determine the net income or loss for the period before transferring it to Retained Earnings or Dividends account. Therefore, the correct answer is D) Income Summary.

In the Closing Process, All the Revenue and Expense Accounts