The entry to close the appropriate insurance account at the end of the accounting period is
A) debit Income Summary; credit Prepaid Insurance
B) debit Prepaid Insurance; credit Income Summary
C) debit Insurance Expense; credit Income Summary
D) debit Income Summary; credit Insurance Expense

Question

Quizplus · Accepted Answer

At the end of the accounting period, the Insurance Expense account is closed to the Income Summary account. This involves debiting Income Summary and crediting Insurance Expense to transfer the expense balance to the Income Summary.

The Entry to Close the Appropriate Insurance Account at the End