Revenue Accounts Are Closed by Crediting Them and Debiting Retained

question 60

True/False

Revenue accounts are closed by crediting them and debiting Retained Earnings.

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Definitions:

Down Payment

An initial upfront portion of the total amount due that is paid at the time of purchase, often in the context of buying property or high-value items.

Accrued Expenses

Expenses that have been incurred but not yet paid for, recognized in the accounting period they are incurred, not when they are paid.

Accounting Period

A specific period of time used for financial accounting purposes, during which financial statements are prepared.

Cash Payments

Outflows of cash from a company to settle obligations or purchase goods and services.