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true or false - closing the books is the process of closing and transferring the temporary...

true or false - closing the books is the process of closing and transferring the temporary accounts to retained earnings to reset them to $0 for the next period

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Answer #1

Yes, this statement is true.

At end of accounting period, all temporary account closed to retained earnings for preparation of income statement. Temporary account include sales revenue, interest revenue, rent revenue, utility expense, depreciation expense, repair and maintenance expense, cost of goods sold, wages and salaries expense etc. After closing the all temporary account to retained earnings, Balance of temporary account is become zero.

In simple words, this statement is True.

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