When closing the Income Summary account when there is a net income
A) Capital would increase.
B) Capital would decrease.
C) Capital would remain the same.
D) None of these are correct.

Question

Quizplus · Accepted Answer

When there is a net income, closing the Income Summary account involves transferring the net income to the Capital account, which increases the Capital account balance.

When Closing the Income Summary Account When There Is a Net