Which of the following describes the correct sequence of year- end closing entries?
A)Close Revenues to Income summary; close Income summary to Retained earnings; close Expenses to Retained earnings.
B)Close Revenues to Retained earnings; close Expenses to Retained earnings; close Income summary to Retained earnings.
C)Close Expenses to Income summary; close Revenues to Income summary; close Income summary to Retained earnings.
D)Close Revenues to Income summary; close Expenses to Income summary; close Income summary to Retained earnings.

Question

Quizplus · Accepted Answer

The correct sequence involves closing revenues to the Income Summary, then closing expenses to the Income Summary, and finally closing the Income Summary to Retained Earnings.

Which of the Following Describes the Correct Sequence of Year-