The Income Summary Account Is

question 94

Multiple Choice

The Income Summary account is:

• A) The account from which the amount of the net income or loss is transferred to the owners' capital accounts in a partnership.
• B) A temporary account.
• C) Used in the closing process to summarize the amounts of revenues and expenses.
• D) Not a permanent account.
• E) All of these answers are correct.

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Definitions:

Account Payable

An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors or suppliers.

T-Accounts

A bookkeeping tool used to visualize and manage debits and credits for individual accounts.

Services Provided

Tasks or duties performed for clients or customers that often constitute the business's revenue basis.

Stockholder Investments

The funds or resources contributed by shareholders to a corporation in exchange for ownership shares.