Which of the Following Accounts Is Not Closed to Income

question 199

Multiple Choice

Which of the following accounts is not closed to Income Summary at the end of the accounting period?

• A)Rent Expense
• B)Service Revenue
• C)Unearned Revenue
• D)Supplies Expense

---

Definitions:

Lease Contracts

Agreements in which one party (the lessor) grants another party (the lessee) the right to use property, equipment, or facilities for a specified time in exchange for payment.

Sale-Or-Return Contract

A contract in which the buyer and seller agree that the buyer may return the goods at a later time.

Voidable Title

Title that occurs in situations in which the contract between the original parties would be void, but the goods have already been sold to a third party.

Common Law

The body of law developed from judicial decisions and customs, as opposed to statutes.