Which Statement Relating to the Profit or Loss Summary Account

question 13

Multiple Choice

Which statement relating to the profit or loss summary account is incorrect?

• A) The balance in the profit or loss summary account is transferred to the owner's capital account.
• B) The profit or loss summary account is a permanent account.
• C) The profit or loss summary account is established to summarise the balances in the income and expense accounts.
• D) The balance in each income and expense account is transferred to the profit or loss summary account.