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Weegy: If revenue accounts are not closed then you will not have an accurate income summary or retained earnings balance. Revenue accounts are temporary and are closed to the income summary for the reporting period. (More)

Weegy: Expenses normally have their account balances on the debit side (left side). A debit increases the balance in an expense account; a credit decreases the balance. Since expenses are usually increasing, think "debit" when expenses are incurred. [ (We credit expenses only to reduce them, adjust them, or to close the expense accounts.) Examples of expense accounts include Salaries Expense, Wages Expense, Rent Expense, Supplies Expense, and Interest Expense. ] (More)

Weegy: required, [ View Cart Accounting Bestsellers Accounting Best Practices Accounting Controls Accounting Procedures Billing Best Practices Bookkeeping Essentials Budgeting Business Ratios CEO Manual CFO Manual Closing the Books Controller Guidebook Cost Accounting Cost Reduction Analysis Financial Analysis Fixed Asset Accounting GAAP Guide GAAP Policies & Procedures GAAS Guide IFRS Made Easy Inventory Accounting Inventory Best Practices Investor Relations Just-in-Time Accounting Management Accounting Mergers & Acquisitions Payroll Management Revenue Recognition Running a Public Company Throughput Accounting Treasury Management Ultimate Accountants' Reference Vest Pocket GAAP Vest Pocket IFRS Newsletter Sign Up Your E-Mail Address * Subscribers receive a monthly discount on accounting books « What is the residual income approach? | Main | What is the operating profit margin? » What is the income summary account? Saturday, March 26, 2011 at 12:23PM The income summary account is a transitional account into which all income statement revenue and expense accounts are transferred at the end of an accounting period. The net amount transferred into the income summary account equals the net profit or loss that the business incurred during the period. Thus, shifting revenue out of the income statement means debiting the revenue account for the total amount of revenue recorded in the period, and crediting the income summary account. Likewise, shifting expenses out of the income statement requires you to credit all of the expense accounts for the total amount of expenses recorded in the period, and debit the income summary account. This is the first step you would take in using the income summary account. ] (More)

Weegy: Unlike an accrual entry, an adjusting entry does not reverse. Common adjusting entries are: Allowance for Bad Debt (More)