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

question 179

True/False

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

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Definitions:

Required Units

The quantity of products or services that must be produced or sold to meet a specific target or fulfill a certain demand.

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Sales

The total amount earned from selling goods or services over a particular period, usually before any expenses are deducted.