The Income Summary account is used for the following purpose: a. To transfer the permanent accounts to

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The Income Summary account is used for the following purpose:

a. To transfer the permanent accounts to the owner’s capital account at the end of an accounting period

b. To keep track of the profitability of an organization during the accounting period

c. To transfer the credit balances and debit balances in temporary accounts and to transfer the net balance to the owners’ capital account

d. To ensure the accounting software package is summarizing financial information correctly during the accounting period

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Related Book For  answer-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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