The last closing entry for a corporation transfers the net income after income taxes from the Income Summary account to Retained Earnings.

Question

Quizplus · Accepted Answer

This statement is true. The Income Summary account is used to summarize the revenues and expenses for the period, and the final balance in this account is transferred to Retained Earnings. This transfer represents the company's net income after income taxes for the period.

The Last Closing Entry for a Corporation Transfers the Net