When the Balance in the Income Summary Account Is a Credit

question 8

Multiple Choice

When the balance in the Income Summary account is a credit, the company has

• A) incurred a net loss.
• B) incurred a net income.
• C) had more expenses than revenue.
• D) made an error in their closing entries.

---

Definitions:

Owners Invested

The funds or resources that business owners put into their company to support its operations and growth.

Quick Ratio

A financial metric measuring a company's ability to meet short-term obligations with its most liquid assets, excluding inventory.