The entry to close the Income Summary to Capital was omitted, there was a net income. This error would cause

Question

Quizplus · Accepted Answer

If the entry to close the Income Summary (which reflects net income) to the Capital account is omitted, the Capital account will not include the net income for the period, causing it to be understated. Net income itself is not directly affected by this omission in terms of its calculation; it affects the capital account's representation of the owner's equity.

The Entry to Close the Income Summary to Capital Was