Which of the Following Accounts Will Not Normally Have a Zero

question 45

Multiple Choice

Which of the following accounts will not normally have a zero balance after the closing entries have been posted?

• A)Fees Income
• B)Rent Expense
• C)Capital
• D)Income Summary

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Definitions:

IntrA-Entity Gains

Profits realized from transactions occurring within the same company, often between different divisions or subsidiaries.

Initial Value Method

Initial Value Method is an accounting approach where investments are recorded at their purchase cost, without subsequent adjustments for changes in fair value.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after adjusting for intercompany transactions.

Intra-Entity Transfers

Transactions involving the transfer of goods, services, or resources between divisions or entities within the same company.