Closing Entries Result in the Transfer of Net Income or Net

question 163

True/False

Closing entries result in the transfer of net income or net loss into the Retained Earnings account.

---

Definitions:

Full Disclosure Principle

An accounting principle requiring that financial statements present all relevant information about the business's financial condition and performance.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the cost of shipping as soon as the goods leave the seller's premises.

Goods In Transit

Items being transported from one location to another, which have not yet reached the recipient or destination point.

Purchaser's Inventory

Goods and materials that a business holds for the ultimate goal of resale.