If a Business Has a Net Loss, the Closing Entry

question 110

True/False

If a business has a net loss, the closing entry to close Income Summary would be a debit to Income Summary and a credit to Retained Earnings.

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Definitions:

Waiting Patiently

The ability to endure delay or endure difficult situations without becoming annoyed or anxious.

North American Companies

Businesses or corporations that are based in North America, encompassing Canada, the United States, and Mexico.

Change Initiatives

Programs or projects implemented to alter the course of an organization’s path, aiming for improvement in processes, culture, or outcomes.

Psychological Fatigue

A state of mental exhaustion caused by prolonged stress, overwork, or intense cognitive activity, leading to decreased performance and motivation.