Which of the Following Accounts Will Be Closed to the Retained

question 194

Multiple Choice

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

• A) Rent Expense
• B) Fees Earned
• C) Income Summary
• D) Depreciation Expense

---

Definitions:

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services purchased on credit.

Net Income

The earnings a company retains following the deduction of all costs and taxes from its revenue.

Rent Expense

The cost incurred by a business to use property or equipment for business purposes.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.