To What Account Is the Balance in the Income Summary

question 54

Multiple Choice

To what account is the balance in the Income summary account closed?

• A) The Withdrawal account
• B) The Net Income account
• C) The Capital account
• D) The Revenue account

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Definitions:

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.

Queue Time

The duration a product or job order spends waiting to be processed, not including the time actually taken to complete the task.

Non-value-added Time

Time during production that does not directly contribute to the final value of the product, such as waiting times or transportation of goods.

Financial Measures

Metrics used to evaluate a company's financial performance and health.