In the Accounting Cycle,closing Entries Are Prepared Before Adjusting Entries

question 132

True/False

In the accounting cycle,closing entries are prepared before adjusting entries.

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Definitions:

Sales

The total amount of goods or services sold by a company within a specific period; it is a primary source of revenue for retail and manufacturing businesses.

Collected

Collected typically refers to the process of receiving money that is owed to a business or institution, including payments for goods, services, or debts.

Paid

The status of having been compensated or settled a financial obligation or invoice.

Adjusting Entry

An accounting entry made to update the accounts to reflect accurate and up-to-date information before financial statements are prepared.