During Closing, Revenue Accounts Are Closed by Debiting the Revenue

question 69

True/False

During closing, revenue accounts are closed by debiting the revenue account and crediting the retained earnings account.

Comprehend the difference between finite capacity scheduling and MRP in terms of capacity considerations.

Understand the calculation and importance of lead times, inventory availability, and purchase orders in MRP.

Identify the effects of MRP on inventory management and response to market changes.

Grasp the role of dependent demand in determining the quantity required of items.

---

Definitions:

Subsidiary

A company that is controlled by another company, usually referred to as the parent company or holding company.

Listed Company

A company whose shares are traded on a public stock exchange, allowing investors to buy and sell shares.

Retail Industry

The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.