The Sales Revenue,Delivery Expense,and Sales Discounts Forfeited accounts will be closed via the ________ account.
A)Income Summary
B)Retained Earnings
C)Dividends
D)Stockholders' Equity

Question

Quizplus · Accepted Answer

The Income Summary account is used to close all temporary accounts, such as Sales Revenue, Delivery Expense, and Sales Discounts Forfeited. These accounts are closed at the end of the accounting period to determine the net income or net loss for the period, which is then transferred to the Retained Earnings account in the Stockholders' Equity section. Dividends are not used to close accounts, as they are distributions of profits to shareholders and not related to the closing process.

The Sales Revenue,Delivery Expense,and Sales Discounts Forfeited Accounts Will Be