Which of the Following Accounts Should Be Closed to Income

question 37

Multiple Choice

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

• A) Service Revenue
• B) Equipment
• C) Prepaid Insurance
• D) Unearned Rent

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Definitions:

Not a Merchant

This term indicates an individual or entity that is not engaged in the buying and selling of goods or services, typically within the context of commercial law.

Reasonable Time

A legal term referring to a period of time that is fairly appropriate under the circumstances to perform a particular act or fulfill a duty.

Revoke Acceptance

The right of a party to reject goods or services previously accepted, typically due to the discovery of defects or the nonconformity of the goods or services with contractual terms.

Nonconforming Goods

Products that fail to meet the quality, design specifications, or performance standards as outlined in a purchase contract.