It Is Not Necessary to Post the Closing Entries to the Ledger

question 116

True/False

It is not necessary to post the closing entries to the ledger accounts because new revenue and expense accounts will be opened in the subsequent accounting period.

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Definitions:

Cost of Goods Sold

The expenses directly related to the manufacturing of products a company sells, such as raw materials and workforce costs.

Selling and Administrative Expenses

Operating expenses not directly tied to the production of goods, including costs related to sales, marketing, and general administration.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead.

Standard Cost Variances

Refers to the differences between the standard costs planned for goods or services and the actual costs incurred.