Asked by Keondra Rouse on May 23, 2024
Verified
Cost of Goods Sold is debited to close the account during the closing process.
Cost of Goods Sold
Expenses directly linked to manufacturing goods for sale, covering both the cost of materials used and the wages for labor.
Closing Process
The year-end procedure used in accounting to transfer balances from temporary accounts to permanent accounts, preparing the books for the next fiscal period.
- Acquire knowledge about the steps required to close accounts when an accounting period ends.
Verified Answer
PS
PBRH SURAYA BINTI MISLANMay 26, 2024
Final Answer :
False
Explanation :
Cost of Goods Sold is an expense account and is closed by crediting it, not debiting, during the closing process to transfer its balance to the Income Summary account.
Learning Objectives
- Acquire knowledge about the steps required to close accounts when an accounting period ends.