The balance in an expense account is closed to a(n)
A) capital account.
B) revenue account.
C) drawing account.
D) income summary account.

Question

Quizplus · Accepted Answer

The balance in an expense account is closed to the income summary account. The income summary account is used to summarize the business's income and expenses for a specific period, and the balance in the expense account is subtracted from the balance in the revenue account to determine the business's net income or net loss. Therefore, the correct answer is D) income summary account.

The Balance in an Expense Account Is Closed to A(n)