Which of the following is true about closing the books of a corporation?
A)Expenses are closed to the Expense Summary account.
B)Only revenues are closed to the Income Summary account.
C)Revenues and expenses are closed to the Income Summary account.
D)Revenues, expenses, and the dividends declared account are closed to the Income Summary account.

Question

Quizplus · Accepted Answer

Revenues and expenses are closed to the Income Summary account to calculate the net income or loss for the period, which is then transferred to the retained earnings account.

Which of the Following Is True About Closing the Books