The special 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:
A) Contra account.
B) Income Summary account.
C) Nominal account.
D) Closing account.
E) Balance column account.

Question

Quizplus · Accepted Answer

The Income Summary account is specifically used in the closing process to temporarily hold the balances of revenues and expenses. This account is closed out at the end of the period by transferring the net difference (either a profit or loss) to the owner's capital account.

The Special Account Used Only in the Closing Process to Temporarily