Which of the following is a true statement about closing the books of a proprietorship?
A) Expenses are closed to the Expense Summary account.
B) Only revenues are closed to the Income Summary account.
C) Revenues and expenses are closed to the Income Summary account.
D) Revenues expenses and the owner's drawings account are closed to the Income Summary account.

Question

Quizplus · Accepted Answer

In a proprietorship, both revenues and expenses are closed to the Income Summary account to measure the net income or loss for the period. The owner's drawings account is not closed to the Income Summary account since it is not an expense.

Which of the Following Is a True Statement About Closing