To what account is the balance in the Income summary account closed?
A) The Withdrawal account
B) The Net Income account
C) The Capital account
D) The Revenue account

Question

Quizplus · Accepted Answer

The balance in the Income Summary account is closed to the Capital account. This process is part of the closing entries in accounting, where the Income Summary account, which temporarily holds the net income or loss after revenues and expenses are closed out, is then closed to the Capital account to adjust the owner's equity to reflect the company's profit or loss for the period.

To What Account Is the Balance in the Income Summary