If a profit has been earned for the year, before the closing entries, the profit or loss summary account has a___________________ balance.
A) debit
B) credit
C) positive
D) negative

Question

Quizplus · Accepted Answer

Profit increases the equity of the owner, which is a credit balance. Therefore, the profit or loss summary account has a credit balance when there is a profit for the year.

If a Profit Has Been Earned for the Year, Before