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.

Understand operations objectives in customer-driven organizations.

Recognize the significance of continuous improvement and its application in organizations.

Describe the role of technology in improving operation quality and efficiency.

Understand the concept of organisational subcultures and the factors that contribute to their formation.

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Definitions:

Turnover

Turnover is a financial metric that measures the rate at which a company sells and replaces its inventory or the efficiency with which it uses its assets to generate sales.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain from the investment by its cost.

Turnover

In financial terms, it can also refer to the volume of business conducted over a period of time, such as sales turnover.

Operating Assets

Assets that are utilized in the daily operations of a business to generate revenue, excluding investment and non-operational assets.