The balance in the profit or loss summary account before it is closed represents:
A) profit (or loss) less drawings.
B) total expense.
C) profit (or loss).
D) total owner's capital.

Question

Quizplus · Accepted Answer

The balance in the profit or loss summary account before it is closed represents the profit (or loss) earned by the business during the period. It does not include drawings or owner's capital, which are separate accounts. Therefore, the correct answer is C.

The Balance in the Profit or Loss Summary Account Before