The Income Summary account is used to:
A)Adjust and update asset and liability accounts.
B)Close the revenue and expense accounts.
C)Determine the appropriate dividend amount.
D)Replace the income statement under certain circumstances.
E)Replace the Retained earnings account in some businesses.

Question

Quizplus · Accepted Answer

The Income Summary account is used to close the revenue and expense accounts at the end of an accounting period, by transferring the net profit or loss to the Retained Earnings account.

The Income Summary Account Is Used To