Question Details

The Dividends account is closed to the Income Summary




1.	No permanent account balances are changed in the closing process.

	2.	Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.


	3.	The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

	4.	After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.


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




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