In the Closing Process for Corporations, Net Income Is Closed

question 92

True/False

In the closing process for corporations, net income is closed to the retained earnings account.

---

Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Inventory

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Net Loss

A situation where total expenses exceed total revenues during a specific period, resulting in negative profit.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.