The Income Summary Account Is Used To

question 12

Multiple Choice

The Income Summary account is used to:

• A) Determine the appropriate withdrawal amount.
• B) Adjust and update asset and liability accounts.
• C) Replace the capital account in some businesses.
• D) Replace the income statement under certain circumstances.
• E) Close the revenue and expense accounts.

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Definitions:

Verbal Description

An explanation or representation of a mathematical concept or problem using words.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols but does not have an equality sign.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, letters (variables), and operators, indicating operations to be performed.

Money

Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as banknotes and coins.