Which Account Will Have a Zero Balance After Closing Entries

question 58

Multiple Choice

Which account will have a zero balance after closing entries have been journalized and posted?

• A)Service revenue.
• B)Supplies.
• C)Prepaid Insurance.
• D)Accumulated Depreciation.

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Definitions:

Industry Averages

Statistical metrics that summarize the average performance, behavior, or characteristic of companies within a specific industry.

Relative Position

The placement or rank of something in relation to others based on a specific criteria.

Vertical Analysis

A technique for evaluating financial statement data that expresses each item within a financial statement as a percentage of a base amount.

Net Income

The net income of a business following the subtraction of all costs and taxes from its revenue.