To which of the following accounts should the balance in the Income Summary account be closed?
A) Owner, Withdrawals
B) Net Income
C) Owner, Capital
D) Service Revenue

Question

Quizplus · Accepted Answer

The balance in the Income Summary account is closed to the Owner, Capital account. This process finalizes the transfer of net income (or loss) and owner withdrawals to the owner's equity, adjusting the owner's capital to reflect the business's performance and distributions during the period.

To Which of the Following Accounts Should the Balance in the Income