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STatiana [176]
1 year ago
7

when revenue is greater than total expenses, resulting in a net income, the income summary account has a

Business
1 answer:
STALIN [3.7K]1 year ago
8 0

The Income Summary account has a credit balance when revenue exceeds total expenses, producing a net profit, as indicated by the T account.

<h3>The outcome is net when revenue exceeds expenses.</h3>

A corporation will record a net profit if its revenue exceeds its costs. It will record a net loss if its expenses outweigh its income.

<h3>What happens if total revenue exceeds total expenses?</h3>

The business makes a net profit when revenues are higher than costs.

<h3>If the revenue for an accounting cycle is more than the expenses, what is the final entry for the income summary account?</h3>

The closing entry involves debiting income summary and crediting retained earnings if a company's sales exceed its expenses. If the period results in a loss, the income summary account must be credited and retained earnings must be debited.

To Know more about credit balance

brainly.com/question/14781034

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