Question

The entry to transfer net income to the owner's capital account would include a debit to the owner's capital account

Answer 1

The statement "The entry to transfer net income to the owner's capital account would include a debit to the owner's capital account" is FALSE. When making entries in transferring net income to owner's capital account it must include a debit on Income Summary and a credit on Owner's Capital account. The normal balance of the capital account is credit thus increasing it must require a credit entries.