The entry to close revenue would involve a
A) debit to capital.
B) credit to Income Summary.
C) debit to net income.
D) credit to revenue.

Question

Quizplus · Accepted Answer

The entry to close revenue involves a credit to Income Summary. This is because the purpose of closing entries is to transfer balances from temporary accounts (such as revenue) to the permanent account of Retained Earnings. The credit to Income Summary represents the total revenue earned during the period, which will then be transferred to Retained Earnings.

The Entry to Close Revenue Would Involve a