There are two closing entries. The first one is to close _____; the second one is to close _____.
A) revenues and expenses, the drawing account
B) revenues, expenses and the drawing account
C) revenues, expenses
D) the drawing account, revenues

Question

Quizplus · Accepted Answer

The first closing entry is to close revenues and expenses to update the income summary account. The second closing entry is to close the drawing account to update the owner's capital account.

There Are Two Closing Entries