The Concept of "Pay Myself First," Saving and Investing Before

question 76

True/False

The concept of "pay myself first," saving and investing before you pay other expenses,is a characteristic of successful financial managers.

---

Definitions:

Preparing Closing Entries

The procedure of transferring all income statement balances to permanent accounts at the end of an accounting period to prepare for the next period.

Fiscal Year

A one-year period that companies use for financial reporting and budgeting, which does not necessarily align with the calendar year.

Accounting Period

A specific period of time used by businesses to calculate their financial results and prepare financial statements, such as a month, quarter, or year.

Calendar Year

A period of one year that begins on January 1 and ends on December 31, used as an accounting period by many businesses.