ACCOUNTING I Dersi Completing the Accounting Cycle soru detayı:

CEVAP:

When the revenue accounts and expense accounts are closed and their balances were transferred to Income Summary account, the company may easily calculate its profit or loss. If credit side of Income Summary account which holds the totals for revenues is bigger than the debit side of the account that holds the totals for expenses, then profit will occur. If it is vice versa, loss occurs. Whether profit or loss occurs, the balance of the Income Summary account will be transferred to Capital account.