For a merchandising company all accounts that affect the determination of income are closed to the Income Summary account.

Merchandising Company

A business that purchases finished goods for resale, making profit primarily through the markup of these goods.

Income Summary Account

An account used temporarily during the closing process to summarize a period's revenues and expenses before determining net income.

Determination Of Income

The process of calculating the income of a business or individual, considering all sources of revenue and applicable expenses.