The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the
A) Income Summary account
B) Closing account
C) Balance column account
D) Contra account
E) Temporary account

Question

Quizplus · Accepted Answer

The Income Summary account is a temporary account used only in the closing process to hold the amounts of revenues and expenses before they are transferred to the owner's capital account. It is used to determine the net income or loss for the period and to close out temporary revenue and expense accounts.

The Special Account Used Only in the Closing Process to Temporarily