Closing Revenue and Expense Accounts to the Income Summary Account

question 233

True/False

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

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Definitions:

FICA Taxes

Taxes collected in the U.S. to fund the Social Security and Medicare programs, paid by both employees and employers.

Gross Earnings

The total income earned by an individual or a company before any deductions such as taxes or other expenses.

United Way

United Way is a non-profit organization dedicated to improving lives and strengthening communities through various support and development programs.

Federal Unemployment Taxes

Taxes imposed on employers to fund the federal government’s oversight and support of state unemployment insurance programs.