The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.

Name: The balance in Income Summary after posting all revenues and expenses for the period is equal to net income/loss.
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Question

Quizplus · Accepted Answer

The purpose of the Income Summary account is to show the net income or loss for the period. Therefore, the balance in the Income Summary after all revenues and expenses have been posted should be equal to the net income or loss for the period.

The Balance in Income Summary After Posting All Revenues and Expenses