In Closing Entries, the Income Summary Account Is Closed to the Capital

question 13

True/False

In closing entries, the Income Summary account is closed to the Capital account after Withdrawals.

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Definitions:

Itemized Deductions

Deductions from taxable income that occur when taxpayers list out specific allowable expenses on their tax return.

State Taxes Paid

State Taxes Paid includes any taxes that individuals or businesses pay to state governments, which can include income tax, sales tax, and property tax.

Tax Return

A formal document filed with a government body, reporting income, expenses, and other pertinent tax information, used to calculate tax liability.

Reports Income

The process of declaring income received during a tax year on one's tax return.