Question

True/False

Indicate whether the statement is true or false.
1. Revenue and expense accounts must be closed out because their balances apply to only one accounting
period.
True or false?

Answer 1

True

Step-by-step explanation:

Revenue accounts are accounts were entries of the sales of products as well as the revenue generated by firm or company are properly recorded.

Expense accounts are accounts where that show us the expenses generated by a firm or company. Such expenses are the things the company spends money on which could be purchase of raw materials, payment of labour, repairs of machineries e.t.c.

An accounting period is a duration of time where accounts in a firm or company are balanced and closed for that period.

Revenue and expense accounts must be closed out because their balances apply to only one accounting

period.