The Income Summary account has a $25,000 credit balance after the revenue and expenses accounts have been closed. What does this balance represent?
A) A net loss
B) Net income
C) Additional owner investments
D) Owner withdrawals

Question

Quizplus · Accepted Answer

The $25,000 credit balance in the Income Summary account represents net income, as it indicates that revenues exceed expenses.

The Income Summary Account Has a $25,000 Credit Balance After