The Income Summary account
A) is a permanent account.
B) appears on the statement of financial position.
C) appears on the income statement.
D) is a temporary account.

Question

Quizplus · Accepted Answer

The Income Summary account is a temporary account that is used to close out revenue and expense accounts at the end of the accounting period. It does not appear on the statement of financial position, as it only reflects the results of operations for the period. Rather, it appears on the income statement, and is ultimately closed out to retained earnings or a similar equity account.

The Income Summary Account