Match the terms that follow with the correct definitions.
-Account that is used to assist in closing temporary-equity accounts
A)Interim statements
B)Closing entries
C)Expenses
D)Real or permanent accounts
E)Drawing account
F)Income Summary
G)Post-closing trial balance
H)Accounting cycle
I)Expense and revenue
J)Temporary-equity accounts

Question

Quizplus · Accepted Answer

The Income Summary account is used during the closing process to assist in closing temporary-equity accounts, such as revenues, expenses, and drawings, by summarizing their balances before transferring the net income or loss to the owner's capital account.

Match the Terms That Follow with the Correct Definitions