The income summary account is closed to the retained earnings account.

Name: The income summary account is closed to the retained earnings account.
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The income summary account is used to close temporary revenue and expense accounts at the end of an accounting period. The balance of the income summary account is then transferred to the retained earnings account, which is a permanent equity account in the balance sheet. Therefore, the income summary account is closed to the retained earnings account.

The Income Summary Account Is Closed to the Retained Earnings