Closing Revenue and Expense Accounts at the End of the Accounting

question 147

True/False

Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.

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Definitions:

Flow Variable

A flow variable is an economic measure that represents a movement or quantity that is reported per unit of time, such as income per year or spending per month.

Government Bonds

Government Bonds are debt securities issued by a government to finance public expenditure, typically promising to pay periodic interest payments and to return the face value on maturity.

Coin Collection

Coin collection involves the gathering and studying of coins, often focusing on aspects such as design, production era, and historical significance.

Automobile

An automobile is a wheeled motor vehicle used for transportation, mostly designed to run on roads and capable of carrying a small number of people.