After posting the entries to close all revenue accounts and all expense accounts,the Income Summary account of Waif Services has a $4,000 debit balance.This shows that Waif Services earned a net income of $4,000.

Question

Quizplus · Accepted Answer

A $4,000 debit balance in the Income Summary account indicates a net loss, not net income. Net income would result in a credit balance.

After Posting the Entries to Close All Revenue Accounts and All