The income summary account
A) is a permanent account.
B) appears on the balance sheet.
C) appears on the income statement.
D) is a temporary account.

Question

Quizplus · Accepted Answer

The income summary account is a temporary account used to summarize revenue and expense accounts at the end of an accounting period. Its balance is transferred to the retained earnings account or the owner's capital account at the beginning of the next period. It does not appear on the balance sheet, but it is used in the preparation of the income statement. Therefore, the correct answer is D, it is a temporary account.

The Income Summary Account