There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.
A) Revenues, expenses, income summary, drawing account
B) Expenses, assets, income summary, capital account
C) Capital account, drawing account, income summary, assets
D) Drawing account, income summary, expenses, revenues

Question

Quizplus · Accepted Answer

The first closing entry is to close revenues, the second closing entry is to close expenses, the third closing entry is to close income summary, and the last closing entry is to close the drawing account. This is the most common sequence of closing entries and is known as the four-step closing process.

There Are Four Closing Entries