Which Statement Is Incorrect

question 128

Multiple Choice

Which statement is incorrect?

• A) Revenue accounts are closed to Income Summary.
• B) Expense accounts are closed to Income Summary.
• C) Income Summary is closed to Capital.
• D) Withdrawals are closed to Income Summary.
• E) Withdrawals are closed to Capital.

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Definitions:

Managers

Individuals in an organization responsible for making decisions, overseeing projects, and leading teams towards achieving objectives.

Decentralized Organization

An organizational structure where decision-making authority is distributed across various levels rather than being concentrated at a single point.

Corporate Office

The central or main office of a company, where key administrative and executive activities occur, often housing the CEO and other top management.

Top Management

The highest level of administration and decision making in an organization, typically including positions such as CEO, CFO, and other executive roles.