The Income Summary Account Is Used To

question 3

Multiple Choice

The Income Summary account is used to:

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

---

Definitions:

Potential Donors

Individuals or entities that might be considered likely to donate resources, such as money or goods, to a cause or organization.

U.S. Population

The total number of people living in the United States, as determined by census or estimation.

Economic Dynamics

The study of economic systems in motion, focusing on changes over time and the processes driving these changes.

Psychological Dynamics

The underlying psychological forces that influence human behavior and interactions.