Closing Entries Are an Optional Part of the Accounting Cycle

question 6

True/False

Closing entries are an optional part of the accounting cycle.

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Definitions:

Horizontal Specialization

The division of work in an organization into distinct tasks, with each employee or department focusing on a specific subset of activities, promoting expertise in those functions.

Vertical Hierarchy

An organizational structure where authority and responsibility flow directly from the top down through various management levels, indicating clear lines of authority.

Corporate Charter

A legal document issued by a governmental authority that establishes a corporation as a legal entity and outlines its structure, objectives, and permitted activities.

Organizational Subsystems

Components within an organization that have specific roles and responsibilities, working together to ensure the organization's goals are met.