The Balances of All the Real (Permanent)accounts Are the Same

question 147

True/False

The balances of all the real (permanent)accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.

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Definitions:

Operating Expenses

Expenses incurred in the process of earning sales revenue.

Incremental Effect

The impact of a particular decision on a company's finances, considering only the changes that directly result from the decision.

Net Income

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

Fixed Expenses

Costs that do not change in total regardless of changes in the level of business activity or volume.