Which of the following statements is not correct?
A) Before the Income Summary account is closed,its balance represents the net income or net loss for the accounting period.
B) The Income Summary account is a temporary owner's equity account.
C) The Income Summary account is used only at the end of an accounting period to help with the closing procedure.
D) The owner's drawing account is closed to the Income Summary Statement.

Question

Quizplus · Accepted Answer

The owner's drawing account is not closed to the Income Summary statement. Instead, it is closed directly to the owner's capital account.

Which of the Following Statements Is Not Correct