The Income Summary account
A)appears on the balance sheet.
B)appears on the income statement.
C)is closed to the cash account to properly state cash at the end of the period.
D)does not appear in the financial statements.

Question

Quizplus · Accepted Answer

The Income Summary account is a temporary account used during the closing process of the accounting cycle to summarize revenues and expenses for the period. It does not appear in the financial statements because its balance is transferred to the Retained Earnings account (for corporations) or the Capital account (for sole proprietorships and partnerships) after closing entries are made.

The Income Summary Account