Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
A) Supplies Expense
B) Accumulated Depreciation
C) Prepaid Insurance
D) Unearned Rent

Question

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The Supplies Expense account is an expense account that shows the total amount of supplies used during the year. At the end of the fiscal year, the balance of this account should be closed to the Income Summary account to determine the net income or loss of the business. The other accounts listed (Accumulated Depreciation, Prepaid Insurance, and Unearned Rent) are not income or expense accounts and are not closed to Income Summary at the end of the fiscal year.

Which of the Following Accounts Should Be Closed to Income