Income Summary Is A Temporary Account Only Used For The Closing Process True Or False

Income Summary Account is a Temporary Account only used for the closing process is "True", as it is used to close Temporary Accounts (Revenues & Expenses).

During the closing process of temporary accounts, the purpose of income summary account is to close all temporary accounts at the end of the accounting period. So, it is a summary of revenues and expenses to show the difference between revenues and expenses to get Income or Loss for the period and such income or loss must be equal to the income or loss of Income Statement.

After preparing income summary account, the balances of temporary account are zero out while the balances of permanent accounts (Assets, Liabilities and Equity) are transferred to post-closing trial balance in order to carry forward the balances of these accounts to the next accounting period.

Moreover, after closing the revenues and expenses to the Income Summary Account, the income summary account is also closed to the Retained Earnings Account.