The Income Summary account is:
A) The account from which the amount of the net income or loss is transferred to the owners' capital accounts in a partnership.
B) A temporary account.
C) Used in the closing process to summarize the amounts of revenues and expenses.
D) Not a permanent account.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. The Income Summary account is a temporary account used in the closing process to summarize the amounts of revenues and expenses and to determine the net income or loss for the period. The amount of the net income or loss is then transferred to the owners' capital accounts in a partnership, and the Income Summary account is closed out. The Income Summary account is not a permanent account, as it is only used at the end of an accounting period for the closing process.

The Income Summary Account Is