The Balance in the Income Summary Account Before It Is

question 139

Multiple Choice

The balance in the income summary account before it is closed will be equal to

• A) the net income or loss on the income statement.
• B) the beginning balance in the owner's capital account.
• C) the ending balance in the owner's capital account.
• D) zero.

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Definitions:

Tort Liability

Legal responsibility arising from a civil wrong that causes harm or loss to another party, not based on contractual obligations.

Unauthorized Acts

Actions taken by an individual or entity that have not been approved or sanctioned by the necessary authority or party.

Ratification

The process of officially sanctioning a treaty or agreement to make it legally binding.

Adoption

The legal process by which an individual assumes the parenting of another, usually a child, from that person's biological or legal parent(s).