The closing process helps in measuring each period's net income separately from all other periods.

Name: The closing process helps in measuring each period's net income separately from all other periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The closing process involves transferring the balances of temporary accounts (such as revenues, expenses, and dividends) to the retained earnings account, which helps in measuring each period's net income separately from all other periods. Therefore, the statement is true.

The Closing Process Helps in Measuring Each Period's Net Income