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 is correct.

Question

Quizplus · Accepted Answer

Closing the Income Summary account involves transferring the net income to the owner's equity account, which is usually the Capital account. Since the net income is a positive amount, it would increase the Capital account. Therefore, option A is the correct choice.

When Closing the Income Summary Account When There Is a Net