Asked by Joshua Waterman on May 20, 2024

verifed

Verified

The Income Summary account is a permanent account that will be carried forward period after period.

Income Summary

The income summary account is used in the closing process of accounting to summarize revenue and expenses for a specific period, helping determine the net income or loss.

Permanent Account

An account that is not closed at the end of the accounting period and whose balances are carried forward to the next period, such as assets, liabilities, and equity accounts.

  • Understand the differences between temporary and permanent accounts and their roles in the accounting cycle.
verifed

Verified Answer

SR
shasha ruslanMay 23, 2024
Final Answer :
False
Explanation :
The Income Summary account is a temporary account used only in the closing process. It is closed at the end of each accounting period and its balance is transferred to the Retained Earnings or Owner's Equity account, depending on the type of entity.