To what account is the balance in the Income summary closed?
A) The Income summary is closed to the withdrawals account.
B) The Income summary is closed to the net income account.
C) The Income summary is closed to the capital account.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The balance in the Income Summary account is closed to the capital account. This process transfers the net income (or loss) and owner's withdrawals to the owner's capital account, reflecting the change in owner's equity for the period.

To What Account Is the Balance in the Income Summary