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:

Transferability

The ability of an asset to be transferred or made over from one party to another.

Close Corporation

A privately held company characterized by a small number of shareholders with no public market for its shares.

LLPs

Limited Liability Partnerships; a type of business structure where partners have limited personal liability for the business's debts and actions.

Tax Advantages

Financial benefits that reduce tax liability, often used by individuals and businesses to minimize taxes paid and maximize financial situations.