Question

1. Which account would be credited when closing the account for rent expense for the year?

a. Rent Expense

b. Prepaid Rent

c. Rent Revenue

d. Unearned Rent Revenue

2. Which of the following accounts is considered a permanent or real account?

a. Prepaid Insurance

b. Interest Revenue

c. Insurance Expense

d. Supplies Expense

3. Which of these accounts would be present in the closing entries?

a. Dividends

b. Accounts Receivable

c. Unearned Service Revenue

d. Sales Tax Payable

4. Which of these accounts is never closed?

a. Retained Earnings

b. Dividends

c. Service Fee Revenue

d. Income Summary

Answer 1

Answers

1. Which account would be credited when closing the account for rent expense for the year?

Correct Answer a. Rent Expense
Income Summary is debited and expense account to be closed (Rent expense) is credited.

2. Which of the following accounts is considered a permanent or real account?

Correct Answer = Option a. Prepaid Insurance [Asset account]

Others
b. Interest Revenue [revenue]

c. Insurance Expense [expense]

d. Supplies Expense [expense]

3. Which of these accounts would be present in the closing entries?

Correct Answer = Option a. Dividends, as it is a temporary account.

4. Which of these accounts is never closed?

Correct Answer = Option a. Retained Earnings, as it is a permanent Balance sheet Equity account.
Others:

b. Dividends-closed to retained earnings

c. Service Fee Revenue- closed to Income Summary

d. Income Summary-used to close revenues and expenses, and gets closed to retained earnings.