As a Part of the Closing Process,revenues and Expenses May

question 158

True/False

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss)account.

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Definitions:

Comprehensive Income

It encompasses all changes in equity during a period, except those resulting from investments by and distributions to owners.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.

Other Comprehensive Income

Other Comprehensive Income includes revenues, expenses, gains, and losses that are not included in net income but affect equity, such as unrealized gains on securities.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.