After Posting the Entries to Close All Revenue Accounts and All

question 21

True/False

After posting the entries to close all revenue accounts and all expense accounts, the Income Summary account of Waif Services has a $4,000 debit balance. This result implies that Waif Services earned a net income of $4,000.

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Definitions:

Wholesalers

Businesses that purchase goods in large quantities from producers to resell them to retailers or other businesses.

Retailers

Businesses that sell goods and services directly to consumers.

Freight Costs

Expenses associated with transporting goods from one place to another, which can include costs for shipping, trucking, or rail transport services.

Operating Expense

Expenses incurred during the normal operations of a business, such as salaries, rent, and utilities, excluding cost of goods sold.