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Accounts on the Income Statement are closed every period (balance returns to zero). Companies' revenue and expense accounts start with zero balance each period and
Accounts on the Income Statement are closed every period (balance returns to zero). Companies' revenue and expense accounts start with zero balance each period and recording of new transactions begin. As such, there isn't a comprehensive (or running) balance of revenues and expenses at the end of a year on the Income Statement 2. How could this impact the analysis and evaluation of a company's performance over time? II 3. How does this differ, for example, from the tracking and comprehensive picture of how a company collects its debts (running balance in accounts receivable presented in the Balance Sheet)
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