The Income Summary account is a(n)
A) Temporary account
B) Income Statement account
C) Permanent account
D) Balance Sheet account
E) Both Income Statement and Balance Sheet accounts

Question

Quizplus · Accepted Answer

The Income Summary account is a temporary account used to summarize the revenue and expenses for the period before transferring the net income or loss to the Retained Earnings account. It is closed at the end of the accounting period and its balance is transferred to the Retained Earnings account, which is a permanent account.

The Income Summary Account Is A(n)