



Supporting operational decision-making What are some specific examples of revenue accounts that are closed to the income summary?
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what is income summary Informational
- Specific accounting and reporting requirements
- Effective internal controls over financial reporting How does the income summary account help in communicating a company's financial performance to external stakeholders?
- Reconciling book income to taxable income Can the income summary account be used for evaluating the performance of sales teams or individual salespeople?
- Identifying discrepancies in closing entries
- Consistent use across different periods
- Verifying account balances
- Matching revenues with related expenses
- Internal control benefits Are there alternative methods to closing accounts without using an income summary?
- Maintaining a clear audit trail of closing entries
- Depreciation expense How does the income summary account relate to the calculation of earnings per share (EPS)?
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