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.

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Definitions:

Joint-Stock Companies

These are businesses owned by shareholders who invest money in the company in exchange for a share of the profits and losses.

Overseas Trading

The act of buying and selling goods and services across international borders, allowing countries to expand markets and gain access to foreign products.

English Privateers

Privately owned ships sanctioned by the English government during the 16th to 18th centuries to conduct raids on enemy shipping and settlements.

Imported Goods

Products or commodities that are brought into one country from another for the purpose of sale or trade.