The account to which revenue and expenses are closed is called
A) Cash.
B) Drawing.
C) Income Summary.
D) Net Income.

Question

Quizplus · Accepted Answer

The account to which revenue and expenses are closed is called Income Summary. This is an intermediate account used in the closing process to summarize revenues and expenses and transfer the resulting net income or net loss to the owner's equity account. Choices A, B, and D are not the correct answer as they are not the accounts used for closing revenue and expenses.

The Account to Which Revenue and Expenses Are Closed Is