What is the correct sequence for closing the temporary accounts?
A) revenue accounts,expense accounts,Income Summary,drawing account
B) expense accounts,revenue accounts,Income Summary,drawing account
C) revenue accounts,expense accounts,drawing account,Income Summary
D) drawing account,revenue accounts,expense accounts,Income Summary

Question

Quizplus · Accepted Answer

The correct sequence for closing the temporary accounts is to first close revenue accounts, then expense accounts, followed by transferring the balance to the Income Summary, and finally closing the drawing account. This sequence ensures that all revenues and expenses are accounted for in determining the net income or loss, which is then transferred to the owner's capital account through the closing of the drawing account.

What Is the Correct Sequence for Closing the Temporary Accounts