An Expense Account Is Closed with a Credit to the Expense

question 26

True/False

An expense account is closed with a credit to the expense account and a debit to Income Summary.

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Definitions:

Wages And Salaries

Compensation paid to employees for their labor, either on an hourly (wages) or fixed salary basis.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate comparisons and planning.

Supplies Cost

The cost associated with purchasing supplies necessary for the daily operations of a business.

Flexible Budget

A budget that is flexible and adjusts according to activity level or volume changes.