Income Summary

question 76

Multiple Choice

Income Summary:

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

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Definitions:

External Financing

Funds that a business obtains from outside sources to finance its operations, growth, or projects, which can include loans, equity investments, and bonds.

Pro Forma Balance Sheet

A financial statement projecting future financial position of a company based on expected future transactions.

Managers

Individuals who are responsible for directing and overseeing the operations and strategies of an organization or its parts.