To which of the following accounts should the balance in the Income Summary account be closed?
A) Dividends
B) Net Income
C) Retained Earnings
D) Service Revenue

Question

Quizplus · Accepted Answer

The balance in the Income Summary account is closed to the Retained Earnings account. This process transfers the net income (or loss) and dividends to the Retained Earnings, which reflects the company's accumulated profits less any dividends paid out.

To Which of the Following Accounts Should the Balance in the Income