LO 5.1 Which of these accounts is never closed?Choose one answer from the options below.A. Prepaid RentB. Income SummaryC. Rent RevenueD. Rent Expense
Question
LO 5.1 Which of these accounts is never closed?Choose one answer from the options below.A. Prepaid RentB. Income SummaryC. Rent RevenueD. Rent Expense
Solution
The account that is never closed is A. Prepaid Rent.
Here's why:
A. Prepaid Rent: This is an asset account that represents an advance payment for rent on a lease. It is not closed because it is adjusted over time as the prepaid amount is gradually used up.
B. Income Summary: This is a temporary account used in the closing process that contains a summary of all revenue and expense accounts. It is closed at the end of each accounting period.
C. Rent Revenue: This is a temporary account that tracks the income earned from renting out property. It is closed at the end of each accounting period.
D. Rent Expense: This is a temporary account that records the cost of rent for the period. It is closed at the end of each accounting period.
Similar Questions
LO 5.1 Which of these accounts would be present in the closing entries?Choose one answer from the options below.A. Dividends B. Accounts ReceivableC. Unearned Service RevenueD. Sales Tax Payable
LO 5.1 Which account would be credited when closing the account for fees earned for the year?Choose one answer from the options below.A. Accounts ReceivableB. Fees Earned RevenueC. Unearned Fee RevenueD. Income Summary
LO 5.2 Which of these accounts is included in the post-closing trial balance?Choose one answer from the options below.A. Sales RevenueB. Salaries ExpenseC. Retained EarningsD. Dividends
After recording and posting the closing entries, which of the following accounts will have a zero balance?*a. Professional feesb. Advertising suppliesc. Prepaid Rentd. Allowance for Doubtful Accounts
Which of the following accounts will be closed by crediting retained earnings?Group of answer choicesService revenueAccumulated depreciationDepreciation expenseAccounts payable
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.