The Normal Balance of Income Summary Is

question 9

Multiple Choice

The normal balance of Income Summary is:

• A)debit.
• B)credit.
• C)The account does not have a normal balance.
• D)It depends on which financial statement it appears.

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Definitions:

Balance Sheet

A financial summary that captures the essence of a company’s assets, debts, and the share of equity belonging to investors at a given time.

Incurred

To suffer or become subject to an obligation, usually a cost or expense, as a result of one's actions or the operation of a business.

Accrual Accounting

A financial recording technique that logs income and expenditures at the time they are accrued or incurred, irrespective of the actual cash flow timing.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.