Just-In-Time Manufacturing (JIT) Is a System That Acquires Inventory and Produces

question 80

True/False

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

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Definitions:

Permanent Account Balances

The ongoing balances in balance sheet accounts that are carried over from one accounting period to the next.

Temporary Account Balances

Accounts that are closed at the end of each accounting period, including revenues, expenses, and dividends accounts.

Net Income

The net gain a company achieves after all operational costs and taxes are removed from its entire revenue.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thereby preparing the books for the next period.