After closing the revenue and expense accounts, Income Summary showed a debit balance of $1,900. Which of the following statements is true?
A) The company had a net loss of $1,900.
B) The company had a net income of $1,900.
C) The company's cash increased $1,900.
D) The Capital account increased $1,900.

Question

Quizplus · Accepted Answer

A debit balance in the Income Summary account indicates that expenses exceeded revenues, resulting in a net loss of $1,900.

After Closing the Revenue and Expense Accounts, Income Summary Showed