A Revenue Account Is Closed with a Credit to the Revenue

question 164

True/False

A revenue account is closed with a credit to the revenue account and a debit to Income Summary.

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Definitions:

Selling Division

The segment of a company responsible for selling products or services, often considered in transfer pricing situations.

Transfer Price

The price charged for goods and services sold between departments or subsidiaries of the same company.

Detector Division

A specialized unit within a company focused on detecting and analyzing specific types of information or signals.

Outside Customers

Individuals or entities that purchase a company's goods or services but are not part of the company itself.