Closing Revenue and Expense Accounts to the Income Summary Account

question 166

True/False

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

---

Definitions:

Production Costs

Expenses incurred in the creation of a product or service, including raw materials, labor, and overhead costs.

Equilibrium Price

The equilibrium price in the market where the supply of goods matches the demand for goods.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

French Fries

A popular fast food made by cutting potatoes into strips and deep-frying them until they are crispy.