...almost...when the piston moves up it causes a vacuum and draws the fuel/air mixture through the reeds (they "swing" open). All of that fuel is dumped into the crank area. Once the piston moves back down it tries to force the fuel back into the carb but the reeds don't open in that direction so the fuel gets pushed up through the transfer ports and dumps it on top of the piston, all ready to be ignited to start the whole process over again.
There should be no gap between the reeds and the reed block or some of the fuel will get pushed back into the carb and you will loose some power. Worn reeds will make the engine hard to start and you will loose low end power.