After All Closing Entries Have Been Posted,which of the Following

question 56

Multiple Choice

After all closing entries have been posted,which of the following accounts is most likely to have a nonzero balance?

• A) Income Summary
• B) Utilities Payable
• C) Rent Expense
• D) Service Revenue

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Definitions:

Capital

Financial resources or assets owned by a business, used to fund operations and investments.

Net Loss

A financial situation where the total expenses of a business exceed its total revenues, indicating a negative profit.

Income Summary

An account in which the revenues and expenses are summarized during the closing process, used to transfer net income or loss to owner's equity.

Net Income

The net income a company earns once all costs and taxes are deducted from its total revenues.