Normally Closing Entries Are First Entered in the General Journal

question 171

True/False

Normally closing entries are first entered in the general journal and then posted to the work sheet.

---

Definitions:

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Expense Equation

A formula used to calculate the total expenses by adding various costs and expenses associated with operating a business or managing personal finances.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Wholesale Price

The cost at which goods are sold to retailers by the manufacturers or distributors, which is typically lower than the retail price.