Final answer:
The statement is true; the income summary is a temporary account used internally and does not appear on external financial statements.
Step-by-step explanation:
The statement that income summary does not appear on any financial statement is true. The income summary account is a temporary account used during the closing process in accounting. Its purpose is to collect the balances of all temporary accounts, including revenues and expenses, in order to determine the net income or loss for the period.
Once the period's income and expenses have been summarized, the income summary's balance is transferred to permanent equity accounts, such as retained earnings. As a temporary account used for internal purposes, it is not presented in external financial statements like the balance sheet or income statement.