Each of the Following Accounts Is Closed to Income Summary

question 12

Multiple Choice

Each of the following accounts is closed to Income Summary except

• A) Expenses.
• B) Owner's Drawing.
• C) Revenues.
• D) All of these are closed to Income Summary.

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Definitions:

Whole Life

A type of life insurance policy that offers lifetime coverage, with consistent premiums and a savings component.

Fixed-Rate Tax-Deferred

Describes investment accounts or financial products that accumulate earnings taxed at a later date instead of when they are earned, with a fixed interest rate.

Savings Plan

A program that allows individuals to allocate a portion of their income for long-term savings or investments.

Purchasing Power Risk

The risk that the value of money will decrease over time, eroding the real value of investments and returns.