After closing the revenue and expense accounts,Income Summary showed a debit balance of $2,000.Which of the following statements is true?
A)The company had a net loss of $2,000.
B)The company had a net income of $2,000.
C)The company's cash increased $2,000.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

A debit balance in Income Summary means that the total expenses exceeded the total revenues, resulting in a net loss.

After Closing the Revenue and Expense Accounts,Income Summary Showed a Debit