Which Statement Relating to the Profit or Loss Summary Account

Multiple Choice

Which statement relating to the profit or loss summary account is incorrect?

A) The balance in the profit or loss summary account is transferred to the owner's capital account.
B) The profit or loss summary account is a permanent account.
C) The profit or loss summary account is established to summarise the balances in the income and expense accounts.
D) The balance in each income and expense account is transferred to the profit or loss summary account.