Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A) Service Revenue
B) Equipment
C) Prepaid Insurance
D) Unearned Rent

Question

Quizplus · Accepted Answer

Service Revenue should be closed to Income Summary at the end of the fiscal year because it represents the revenue earned during the year and needs to be transferred to the Income Summary account to calculate the net income or loss for the period.

B) Equipment is a long-term asset and is not closed to Income Summary at the end of the fiscal year.
C) Prepaid Insurance is a current asset and is carried forward to the next fiscal year.
D) Unearned Rent is a liability and is not closed to Income Summary at the end of the fiscal year.

Which of the Following Accounts Should Be Closed to Income