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

Question

Quizplus · Accepted Answer

The 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 Income Summary account. This account acts as a temporary holding account to facilitate the closing process and helps to transfer the balances of revenue and expense accounts to the owner's capital account.

The Special Account Used Only in the Closing Process to Temporarily