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  • Accounting Exams Online Practice Test
  • What account is closed in the first closing entry?
Multiple choice

What account is closed in the first closing entry?

  1. Income Summary

  2. Capital

  3. Sales

  4. Drawing

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The first step in the closing process is to close revenue accounts (like Sales) to the Income Summary account.

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