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) made an error in their closing entries.

Question

Quizplus · Accepted Answer

When the balance in the Income Summary account is a credit, it means that the total revenues for the period exceeded the total expenses, resulting in a net income.

When the Balance in the Income Summary Account Is a Credit