Closing Entries Result in the Transfer of Net Profit or Loss

question 120

True/False

Closing entries result in the transfer of net profit or loss into the Retained Earnings account.

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Definitions:

Milliliters

A metric system volume unit that equals one thousandth of a liter.

Liters

A unit of volume in the metric system, equivalent to 1,000 cubic centimeters or approximately 0.26 gallons.

Centimeter

A unit of length in the metric system, equivalent to one hundredth of a meter, used commonly to measure small distances.

Inches

A unit of length in the Imperial and United States customary systems, equivalent to 1/12 of a foot.