Question

The process of transferring information out of the temporary accounts at the end of an accounting period is called closing. This statement is true or false?

Answer 1

The process of transferring information out of the temporary accounts at the end of an accounting period is called closing.

Step-by-step explanation:

The statement is true. The process of transferring information out of the temporary accounts at the end of an accounting period is indeed called closing. During this process, the balances of revenue, expense, and withdrawal accounts are transferred to the retained earnings account.