The Closing Process Is a Step in the Accounting Cycle

question 120

True/False

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

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Definitions:

Resellers

Businesses or individuals that buy products or services with the intention of selling them rather than consuming or using them.

Institutional Buyers

Organizations that purchase goods and services in large volumes for operational purposes, not for individual consumption.

Purchasing Agents

Individuals or companies responsible for acquiring goods or services for their own use or for resale.

System

A set of interrelated components that work together to achieve a specific goal or function, organized within a framework or structure.