Which of the Following Accounts Will Have an Ending Balance

question 43

Multiple Choice

Which of the following accounts will have an ending balance after the closing process is completed?

• A) Owner, Withdrawals
• B) Rent Expense
• C) Accumulated Depreciation
• D) Service Revenue

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by extending credit.

Year 2

Refers to the second year of a specific timeframe or plan.

Operating Cycle

The period it takes for a company to purchase inventory, sell products, and collect cash from customers, reflecting the efficiency of its business operations.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales to total assets.