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Income Summary Account a. What is the purpose of the Income Summary account b. How does
Chapter 10, Problem 2(choose chapter or problem)
Income Summary Account
a. What is the purpose of the Income Summary account?
b. How does the Income Summary account differ from the other temporary accounts?
Questions & Answers
QUESTION:
Income Summary Account
a. What is the purpose of the Income Summary account?
b. How does the Income Summary account differ from the other temporary accounts?
ANSWER:Step 1 of 3
Income summary is a temporary account in which all the revenue and expenses accounts are transferred to at the end of the accounting period. The resulting balance is considered as a profit or loss that is then transferred to capital account.