What is the correct way to close expenses?
A. Debit expenses and credit Owner's equity
B. Debit Owner's equity and credit expenses
C. Debit expenses and credit Income Summary
D. Debit Income Summary and credit expenses
Which of the following accounts are permanent accounts?
A. Cash
B. Salary expense
C. Interest income
D. Revenue
The entry to close Income Summary
A. depends on the total amount of revenues and total amount of expenses.
B. is always a debit to Income Summary and a credit to Owner's Equity.
C. is always a debit to Owner's Equity and a credit to Income Summary.
D. never occurs.