Indicate Which of the Following Accounts Will Be Closed to Income

question 89

Essay

Indicate which of the following accounts will be closed to Income Summary at year-end.
(a)Cash
(b)Office Supplies Expense
(c)Unexpired Insurance
(d)Unearned Revenue
(e)Dividends
(f)Depreciation Expense
(g)Income Taxes Payable
(h)Accumulated Depreciation

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Definitions:

Common Stock

A type of equity security that represents ownership in a company, with rights to vote and share in dividends.

Statement of Financial Position

Another term for the balance sheet, detailing a company's financial status including assets, liabilities, and equity at a specific point in time.

ROA

Return on Assets; a profitability ratio that measures how efficiently a company can manage its assets to produce profits during a period.