Question

question 6 (10 points)

at the end of the closing process, income summary will hold a balance.

a) true
b) false

Explanation:

Analyze the purpose of the Income Summary account

The Income Summary account is a temporary account used solely during the closing process to accumulate revenues and expenses.

Evaluate the balance at the end of the closing process

During closing, revenues and expenses are transferred to the Income Summary account, and its resulting balance (representing net income or loss) is then closed directly to the owner's capital account. Consequently, the Income Summary account is left with a zero balance.

Answer:

• a) True
• b) False (Correct answer)