When the balance in the Income Summary account is a credit, the company has:
A) incurred a net loss.
B) incurred a net income.
C) had more expenses than revenue.
D) no owner withdrawals during the period.

Question

Quizplus · Accepted Answer

When the balance in the Income Summary account is a credit, it indicates that the company has incurred a net income, as revenues exceed expenses.

When the Balance in the Income Summary Account Is a Credit