Which account has a balance equal to profit immediately before it is closed?
A)The Income summary account
B)The Drawings account
C)The Capital account
D)The Profit account

Question

Quizplus · Accepted Answer

The Income Summary account is used to accumulate all revenue and expense accounts at the end of an accounting period. Its balance represents the net profit or loss before it is closed to the Capital account.

Which Account Has a Balance Equal to Profit Immediately Before