When the balance in the Income Summary account is a debit, the company has:

A) incurred a net loss.
B) incurred a net income.
C) had more revenue than expenses.
D) made an error in their closing entries.

Income Summary

An account used to summarize the revenue and expenses for a specific period, aiding in the transition to the next accounting period.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a financial loss.

Net Income

A company's total earnings post the subtraction of all expenses, taxes, and costs from its overall revenue.