Closing Revenue and Expense Accounts to the Income Summary Account

question 233

True/False

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

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Definitions:

Average Raw Materials Inventory

A measure of the average amount of raw materials on hand over a certain period, indicating how efficiently a company manages its stock of raw supplies.

Total Quality Management

An organization-wide approach to continuously improving the quality of products, services, and processes by focusing on customer satisfaction.

Inventory

The total amount of goods or materials held by a company for the purpose of resale or production.

Produces

To create, manufacture, or bring forth goods or services.