Closing Entries Deal Primarily with the Balances of Real Accounts

question 112

True/False

Closing entries deal primarily with the balances of real accounts.

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Definitions:

Supporting Documents

Documentation that provides evidence for financial transactions, serving as a basis for recording entries in the accounting system.

Internal Control

Procedures and policies implemented by a company to safeguard assets, ensure accurate reporting, and comply with laws and regulations.

Customer's Ledger

A ledger that contains the individual accounts of customers, showing their transactions and balances.

Accounts Receivable

Funds that clients or customers owe to a company for products or services that have been provided but not yet compensated for.