Difference between revisions of "Income Summary"

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[[Income Summary]] (hereinafter, the ''Account'') is a [[temporary account]] in the [[ledger]] that summarizes [[Fiscal Revenue|revenue]] and [[expenses]] and transfers the balance (either [[net income]] or [[net loss]]) to [[Owner's Capital]]. This account does not have a [[account normal balance|normal balance]] (i.e., it could have a debit or a credit balance).
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[[Income Summary]] (hereinafter, the ''Account'') is a [[temporary account]] in the [[ledger]] that summarizes [[Fiscal Revenue|revenue]] and [[expenses]] and transfers the balance (either [[net income]] or [[net loss]]) to [[Owner's Capital]]. This account does not have a [[account normal balance|normal balance]] (i.e., it could have either a debit or a credit balance).
  
  

Revision as of 20:05, 17 December 2018

Income Summary (hereinafter, the Account) is a temporary account in the ledger that summarizes revenue and expenses and transfers the balance (either net income or net loss) to Owner's Capital. This account does not have a normal balance (i.e., it could have either a debit or a credit balance).


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Income Summary. A temporary account in the ledger that summarizes revenue and expenses and transfers the balance (either net income or net loss) to Owner's Capital. This account does not have a normal balance (i.e., it could have a debit or a credit balance).

Related concepts

Related coursework