Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account.
A)Net Income
B)Income Summary
C)Owner,Withdrawals
D)Assets

Question

Quizplus · Accepted Answer

The income summary account is used to temporarily hold revenues and expenses before their final transfer into the retained earnings account, making choice B the best option. The net income account is also used to hold the difference between revenues and expenses, but it is not part of the final transfer process. Owner withdrawals and assets are not related to the transfer of revenues and expenses into the retained earnings account.

Revenues and Expenses Are Transferred to the ________ Account Before