Which accounts are closed to Income Summary?
A) All accounts.
B) Revenue and expenses.
C) Revenue, expenses, and dividends.
D) All accounts that are not nominal.

Question

Quizplus · Accepted Answer

Only revenue and expense accounts are closed to Income Summary as part of the closing process. Dividends are not included as they are not considered an expense. Option A is too broad as it includes all accounts, including permanent accounts, which are not closed at the end of the period. Option D is incorrect because nominal accounts, also known as temporary accounts, are the accounts that are closed to Income Summary, not those that are not nominal.

Which Accounts Are Closed to Income Summary