Asked by Joshua Waterman on May 20, 2024
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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.
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Learning Objectives
- Understand the differences between temporary and permanent accounts and their roles in the accounting cycle.
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