The entry to close operating expenses includes

Question

Quizplus · Accepted Answer

The entry to close operating expenses involves transferring the amount spent on operating expenses to the Income Summary account. This is done by debiting the Operating Expenses account and crediting the Income Summary account. Therefore, the correct choice is B, debiting Income Summary. The other options - debiting Operating Expenses, debiting Retained Earnings, and debiting Cost of Goods Sold - are not part of the entry to close operating expenses.

The Entry to Close Operating Expenses Includes