Which Statement Relating to the Profit or Loss Summary Account

question 2

Multiple Choice

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

• A) The balance in each income and expense account is transferred to the profit or loss summary 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 the profit or loss summary account is transferred to the owner's capital account.

---

Definitions:

Truth Table

A mathematical table used in logic to determine whether an expression is true or false under all possible interpretations.

Contingent

Dependent on or conditioned by something else; possible but not certain to occur.

Truth Table

A mathematical table used in logic to determine whether combinations of propositions are true or false.