The closing process involve(s):
A)reducing to zero the balance in each income statement account.
B)debiting the revenue accounts.
C)crediting the expense accounts.
D)transferring to Retained Earnings the differences between total revenues and total expenses.
E)all of the above.

Question

Quizplus · Accepted Answer

The closing process involves reducing to zero the balance in each income statement account (option A), debiting the revenue accounts (option B), crediting the expense accounts (option C), and transferring to Retained Earnings the differences between total revenues and total expenses (option D). Therefore, all of the options above are correct, making option E the best choice.

The Closing Process Involve(s)