Income Summary

Definition

A temporary account used only during the closing process to collect all revenue and expense balances before transferring the net amount to retained earnings.

Related Terms

Closing Entries

Journal entries made at the end of an accounting period to reset revenue, expense, and dividend accounts to zero so they're ready for the next period. Permanent accounts (assets, liabilities, equity) are not closed.

Learn More About Accounting

Explore our free lessons and practice labs to master accounting concepts.

Browse Lessons View All Terms