In order to close a revenue account, the
A) Income Summary account should be credited.
B) Income Summary account should be debited.
C) Owner's Drawings account should be credited.
D) Owner's Drawings account should be debited.

Question

Quizplus · Accepted Answer

Revenue accounts have a credit balance, so in order to close them, they need to be debited. The Income Summary account is used to summarize all revenue and expense accounts at the end of an accounting period. As such, the Income Summary account should be credited when closing revenue accounts, as this will bring its balance to a net profit for the period.

In Order to Close a Revenue Account, the