Income Summary

question 36

Multiple Choice

Income Summary

• A) is a temporary account.
• B) is a permanent account.
• C) summarizes revenue and expenses and transfers the balance to Capital.
• D) Both A and C are correct.

---

Definitions:

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.

Fourth Unit

In specific contexts, this could refer to the additional unit of a product or service in economic terms, implying the concept of incremental or marginal analysis.

Peak Efficiency

The highest level of operational effectiveness where an entity or process operates at maximum capacity with minimal waste and expense.

Firm

An enterprise like a corporation, partnership, or sole proprietorship involved in commercial, industrial, or professional operations.