Accounting Dictionary - Accounting Concepts
Income Summary Account
Income Summary Account is an account which is used to close revenue and expenses accounts and to summarise total revenue and total expenses for the accounting period.
Since revenue and expenses accounts are used to record accounting data only for a period, opening and closing balances of these accounts are equal to zero. These accounts through the Income Summary in order to calculate the result of operations for period (profit or loss) and to record it in the Retained Earnings account.
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