Asked by Aashma Bista on May 31, 2024
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Income Summary is a temporary account only used for the closing process.
Income Summary
An account used in the closing process that summarizes revenues and expenses, transferring the net income or loss to retained earnings.
Closing Process
A sequence of steps performed at the end of an accounting period to prepare the accounts for the next period, including closing temporary accounts such as income summary, revenues, and expenses.
Temporary Account
Accounts that are closed at the end of each accounting period, including revenues, expenses, and withdrawals.
- Recognize the role and operational mechanisms of adjusting and closing entries in the framework of the accounting cycle.
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Learning Objectives
- Recognize the role and operational mechanisms of adjusting and closing entries in the framework of the accounting cycle.
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