Question

To close income and expense accounts in QB online, you ____.

a) Debit income accounts, credit expense accounts
b) Debit expense accounts, credit income accounts
c) Debit all accounts
d) Do nothing, they close automatically

Answer 1

In QuickBooks Online, income and expense accounts close automatically at the end of the accounting period, and the net income is rolled up into the owner's equity.

Step-by-step explanation:

To close income and expense accounts in QuickBooks Online, you d) Do nothing, they close automatically.

At the end of the accounting period, QuickBooks Online automatically closes out income and expense accounts and rolls up the net income into the owner's equity on the balance sheet. This process simplifies the task of accounting and ensures the records for the new fiscal period start with zero balances in these accounts.