Which of the following should be closed to Income Summary?*a. Accumulated Depreciationb. Withdrawalsc. Salary Expensed. All of these
Question
Which of the following should be closed to Income Summary?*a. Accumulated Depreciationb. Withdrawalsc. Salary Expensed. All of these
Solution
The correct answer is c. Salary Expense.
Here's why:
The Income Summary account is a temporary account used during the closing process that contains a summary of all the revenue and expense accounts.
a. Accumulated Depreciation is a contra asset account and is not closed to the Income Summary account.
b. Withdrawals are not an expense but rather a reduction of owner's equity. Therefore, they are not closed to the Income Summary account.
c. Salary Expense is an expense account and should be closed to the Income Summary account.
d. All of these is not correct because only Salary Expense should be closed to the Income Summary account.
Similar Questions
Which of the following provides a summary of money coming into and going out of the firm that tracks a company's cash receipts and payments?Multiple choice question.income statementstatement of cash flowsjournalbalance sheet
What are the three major categories shown on an income statement?Multiple select question.depreciationoperating expensesassetsrevenuenet income
ash receipts and disbursements related to operations, investments, and financing are reported on the Blank______.Multiple choice question.statement of cash flowsincome statementbalance sheetledger
Which of the items below would appear in the Income Statement columns of the work sheet?Group of answer choicesEquipmentUnearned FeesPrepaid ExpenseNet Loss
LO 5.1 Which of these accounts is never closed?Choose one answer from the options below.A. Prepaid RentB. Income SummaryC. Rent RevenueD. Rent Expense
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.