Which of the Following Accounts Requires a Debit to Close

question 54

Multiple Choice

Which of the following accounts requires a debit to close the account at year-end?

• A)Prepaid rent.
• B)Sales revenue.
• C)Unearned revenue.
• D)Wage expense.

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Definitions:

Liquidation

The process of closing a business and distributing its assets to claimants, typically when it is insolvent.

Bankruptcy Court Judges

Judges specializing in overseeing bankruptcy cases, making decisions on the dischargeability of debts and other related matters.

Congressional Authority

The powers granted to the United States Congress under the Constitution, including legislation, oversight, and the declaration of war.

United States Constitution

The supreme law of the United States, establishing the national government, fundamental laws, and guaranteed certain basic rights for its citizens.