Income Summary:
A) is a temporary account.
B) is a permanent account.
C) summarizes revenues and expenses and transfers the balance to Capital.
D) Both A and C are correct.

Question

Quizplus · Accepted Answer

The Income Summary account is a temporary account used during the closing process to summarize revenues and expenses for the period, and its balance is then transferred to the owner's capital account, reflecting the net income or loss for the period.