The Income Summary account is closed to the retained earnings account.

Name: The Income Summary account is closed to the retained earnings account.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

At the end of an accounting period, the balance in the Income Summary account is transferred to the Retained Earnings account, closing out the temporary accounts and resulting in a net income or loss being added to or subtracted from the retained earnings balance.

The Income Summary Account Is Closed to the Retained Earnings