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 Depreciation
- b. Withdrawals
- c. Salary Expense
- d. 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
Below must be excluded in the cash flow statementa.depreciation expenseb.cash salesc.cash disbursement paymentd.depreciation expense
Which of the items below would appear in the Income Statement columns of the work sheet?Group of answer choicesEquipmentUnearned FeesPrepaid ExpenseNet Loss
Which of the following would you NOT expect to see on a balance sheet?Group of answer choicesLiabilitiesCapitalExpensesCash
Depreciation is considered a type of Blank______.Multiple choice question.selling expensetaxincomeoperating expense
The last part of a business plan.Select one:a.Contingenciesb.Table of Contentsc.Executive Summaryd.Financial Projections
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.