The Income Summary Account Is Used to

question 102

Multiple Choice

The Income Summary account is used to

• A) close the revenue accounts only.
• B) close the revenue accounts and expense accounts only.
• C) close the drawing account.
• D) close revenue accounts and expense accounts and update the owner's capital account.

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Definitions:

Rate Of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Scheduled Payments

Scheduled payments are pre-determined amounts of money that are paid at regular intervals, often as part of a loan or mortgage repayment plan.

Conditional Sale Contracts

Conditional sale contracts are agreements where the sale of an asset or property is contingent upon certain conditions being met, often related to financing or inspection approvals.

Credit Sales

Transactions where goods or services are sold and payment is delayed, often creating accounts receivable.