



Indicator of profitability
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what is income summary Informational
- Impact on owner's equity
- Substantive analytical procedures
- Consistency in reporting How does the income summary account relate to the concept of comparability in financial reporting?
- Income tax expense is reflected in the income summary
- Accurate recording of transactions Can the income summary account be used for performance evaluation of management?
- Detailed procedures
- Matching principle What journal entry is made to close the income summary account?
- Does not reflect cash flows
- Online tutorials and courses How does the income summary account relate to the historical cost principle?
- Relevance, faithful representation, comparability, verifiability, understandability, timeliness How does the income summary account relate to the concept of predictive value in accounting information?
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