A temporary account used to gauge the net revenue or net loss for a business for a period of time. Revenue and expense accounts are closed into an income summary account at the conclusion of the accounting cycle, producing a net balance that indicates the relative success of the business for that accounting period.
Related information about income summary account:
- What is the income summary account? - Questions & Answers ...
Mar 26, 2011 ... The income summary account is a transitional account into which all income statement revenue and expense accounts are transferred at the ...
- What is income summary account? definition and meaning
Definition of income summary account: Temporary account into which revenue and expense accounts are closed at the end of an accounting period.
- Accounting Principles I: Closing Entries
The purpose of the income summary account is simply to keep the permanent ... Closing entry 3: The income summary account's $61 credit balance equals the ...
- Closing Entries - QuickMBA
Revenues and expenses are transferred to the Income Summary account, the balance of which clearly shows the firm's income for the period. Then, Income ...
- How to Close an Income Summary With a Net Loss | Chron.com
If your expenses are greater than the period's revenue, you record a debit balance in the income summary account, reflecting a net loss. Account for the loss ...
- income summary account definition | AccountingCoach.com
A temporary account to which the income statement accounts are closed. This account is then closed to the owner's capital.
- Income Summary Account (Temporary Account, Closing Entries ...
Sep 7, 2012 ... How the income summary account (income summary accounting) is used to transfer gains or losses from the income statement to retained ...
- Closing Entries - NetMBA
At the end of the accounting period, the balances in temporary accounts are transferred to an income summary account and a retained earnings account, ...