The balance in the income summary account before it is closed will be equal to
A) the net income or loss on the income statement.
B) the beginning balance in the owner's capital account.
C) the ending balance in the owner's capital account.
D) zero.

Question

Quizplus · Accepted Answer

The income summary account is used to summarize all revenue and expense accounts at the end of the accounting period. The balance in this account represents the net income or loss for the period, which will be transferred to the owner's capital account. Therefore, the balance in the income summary account will be equal to the net income or loss on the income statement.

The Balance in the Income Summary Account Before It Is