After all closing entries have been entered and posted,the balance of the Income Summary account will be zero.

Question

Quizplus · Accepted Answer

The purpose of closing entries is to transfer the balances of revenue and expense accounts to the Income Summary account, which is then closed out to zero by transferring its balance to the Retained Earnings account. Therefore, the balance of the Income Summary account will indeed be zero after all closing entries have been entered and posted.

After All Closing Entries Have Been Entered and Posted,the Balance