During the closing process, revenues are transferred to the credit side of the Income Summary account.

Question

Quizplus · Accepted Answer

This is true. The closing process involves transferring all revenues and expenses to the Income Summary account, and then transferring the balance of the Income Summary account to the retained earnings account. Revenues are credited to the Income Summary account because they increase the company's net income.

During the Closing Process, Revenues Are Transferred to the Credit