The Last Step in the Closing Process Is to Credit

question 25

True/False

The last step in the closing process is to credit the Drawings account and debit the Capital account.

---

Definitions:

Current Asset

An asset likely to be converted into cash within a year, used in the normal operations of a business.

Plant Asset

A long-term physical asset that is used as part of a company's operations to help in generating revenues, similar to a fixed asset but specifically related to manufacturing.

Land

Real property consisting of natural resources and geographic space, which has various uses such as agricultural, commercial, or residential.

Unearned Revenues

Income received by an individual or company for a service or product that has yet to be provided or delivered.