Current Liability Accounts Are Closed at the End of the Accounting

question 87

True/False

Current liability accounts are closed at the end of the accounting period to "zero out" the balance in Retained Earnings.

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Definitions:

Unearned Revenue

Money received by an entity for a service or product yet to be delivered or performed.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded in the financial statements.

Accrued Revenue

Income that has been earned through sales or services but has not yet been received or recorded.

Tenant

An individual or entity that occupies property or land rented from a landlord under a lease agreement.