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:

Current Liabilities

Obligations that will come due within one year or within the operating cycle, whichever is longer.

Common-Size Income Statement

A common-size income statement presents all line items as a percentage of revenue, allowing for easier comparison across companies and time periods by standardizing financial statements.

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Round

In mathematics or financial contexts, to round means adjusting a number to a specified degree of precision, often to the nearest whole number or decimal place.