Revenue Accounts Are Closed by Crediting Them and Debiting Retained

question 84

True/False

Revenue accounts are closed by crediting them and debiting retained earnings.

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Definitions:

Evidential Matter

Evidential matter consists of all the documentation and information that supports and verifies the transactions recorded in the accounting records.

Financial Statement

Reports that detail the financial activities and position of a business, entity, or individual, typically including the balance sheet, income statement, and cash flow statement.

Assumptions

Statements taken to be true for the purpose of argument or investigation, often foundational in financial modeling and planning.

Inferences

Conclusions or deductions made based on evidence and reasoning.