The Last Step of the Closing Process of a Merchandiser

question 232

True/False

The last step of the closing process of a merchandiser is to make the expense accounts equal zero via the Income Summary account.

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Definitions:

Raw Materials Inventory

The stock of materials before they are processed or used in the production of goods, part of a company's inventory of goods.

Indirect Materials

Indirect materials are supplies used in the production process that, unlike direct materials, are not part of the finished product, such as lubricants and cleaning supplies.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are considered variable costs.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet complete products.