The account used to temporarily hold the profit or loss before being transferred to the capital account is called
A) Income Summary account.
B) Closing account.
C) Drawings account.
D) Contra account.

Question

Quizplus · Accepted Answer

The Income Summary account is used to temporarily hold the profit or loss before being transferred to the capital account during the closing process at the end of an accounting period. The other options (B, C, D) are not relevant to this process.

The Account Used to Temporarily Hold the Profit or Loss