The Income Summary account is used to:

A) Adjust and update asset and liability accounts.
B) Close the revenue and expense accounts.
C) Determine the appropriate dividend amount.
D) Replace the income statement under certain circumstances.
E) Replace the Retained earnings account in some businesses.

Income Summary

An account used in the closing process during the accounting cycle that summarizes the results of operations—revenues and expenses—before transferring the net income or loss to the owner's equity.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.

Expense Accounts

Expense accounts are used in accounting to track money spent or costs incurred in a company's operations.