Yes — chapter boundaries become headings in the DOC, and the table of contents becomes a navigable structure wherever the target supports one. Reading order is taken from the book spine, so chapters appear in the author-intended sequence rather than in filename order.
They convert to the DOC equivalent where one exists, keeping their markers and their link back to the reference point. In flat targets they are appended as plain text at the end of the section, since there is no note mechanism to map onto.
Title, author, publisher, language and description are read from the ebook metadata and written into the DOC document properties where the format supports them.
