If the Income Summary Account Has a Credit Balance Just

question 107

True/False

If the Income Summary account has a credit balance just prior to closing it to retained earnings, the company must have incurred a net income for the year.

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Definitions:

Animal Waxes

Waxy substances produced by animals, often used for protection or waterproofing.

Fatty Acid

Long chain hydrocarbons with a terminal carboxyl group, which are components of many types of lipids (fats and oils).

Alcohol

A compound consisting of carbon, hydrogen, and oxygen, commonly used in beverages, antiseptics, and fuels.