The Income Summary Account Is Used

question 18

Multiple Choice

The Income Summary account is used:

• A)To adjust and update asset and liability accounts.
• B)To close the revenue and expense accounts.
• C)To determine the appropriate dividend amount.
• D)In some situations to replace the income statement.
• E)To replace the retained earnings account in some businesses.

---

Definitions:

Bichromat

An individual with the ability to perceive only two of the three primary colors due to a form of color vision deficiency.

Monochromat

A person who is sensitive to black and white only and hence color–blind.

Sensitization

An increase in responsiveness to a stimulus following its repeated presentation, often leading to the enhancement of a response.

Basilar Membrane

A membrane in the cochlea of the inner ear; it plays a crucial role in the sense of hearing by vibrating in response to sound waves.