which-of-these-accounts-is-never-closed-a-prepaid-rent-b-income-summary-c-rent-revenue-d-rent-expens

Question

Which of these accounts is never closed?
A. Prepaid Rent
B. Income Summary
C. Rent Revenue
D. Rent Expense

Puneet Prajapati · Accepted Answer

so v are going to win this time the you both have done. Okay, so there are actually three types of oppose. 1st 1 is 1st 1 is really about Okay, But you&#x27;re going to understand. And the other two are nominal account in person. Okay. So you can write up, write it down, but I&#x27;m going to write. Or that we will understand it through simple example. There my movie opened. Really? Coming on. I really need. It is the type of a fountain that is never post okay in a and it is also carry forward strong. Couldn&#x27;t financial yet. Okay, gun fund engine. Who next? Financial. So we have You&#x27;re done. Actual definition off. Real account. Okay. Now we will highlight the main characteristics off the telecom set so that you will be able to identified that which is the real account and venture. So, first of all the characteristics, it is never closed to another. So you can infer the never closed rhetoric out like it is never transferred to another. Okay, Because at the end of financial year, what do you do in real world? The actor view John&#x27;s foot If you transfer the balance off, we transfer the balance off. But I&#x27;m Thalia cows too. So in a difficult, we will learn they don&#x27;t. So Okay, when we will face such problems, however you can take it like that that it is never goes to another account for statistics the second punish, it is also carried forward from current financial year. Next. Okay, so this is the most important characteristics, which have I like it with the Lupin. However, we will take example now. So what? That what? The elegance actually fixed the set. I think this exile those machineries mostly Mitch v with the business entity purchase to produce saleable goods, store the customers okay. And in when Drea or in general, we Kinsey sex liabilities. Because sex will include all time of us stand herbal, intangible fixed, non fixed, current, non current. Okay. And same case with the liabilities. Also. So 40 what? I have returning. Example. The phone booth. Four dates of goals. Okay. Will be always be really Okay. So and I said let&#x27;s suppose we have or we can say ABC Company has the eight Yvonne&#x27;s insurance. Okay. Know what happens? Such advance women of insurance four. Next. Yet in good, indeed. Oh, Byler Big goes so $500. It&#x27;s for insurance for next financial year. Next financial. So this $500 it&#x27;s for next minute. However, it has been paired in during financial, So $500 will be considered as in is there And we can also take it like that that a basic of practices who be insurance experts expenses in advance. So in that case, every year the payment of $500 will be paid. Okay. In that case, $500 will be considered as an insect for every financial year because they basically practices the same. Okay, if $500 will be considered as an aside for every financially because off being it in advance, then it will never be closed. Or we can say it will be gay for from one currant bun financially too. Next manage, because we haven&#x27;t been an example. Also a suicide. But another type of or we can say for a sex be open the real account. Okay, so for the current caution, our solution matches Joyce E Okay. However, you can write down cheap one. She want to your notebook for future reference. So but the choice they will be correct. OK,

Puneet Prajapati · Answer

So we are going to win this time. The type of ACOs okay and voter there before balances. Okay. It&#x27;s got like, Okay, so first of all we have we have actually five paper because India continued a subject. Okay, s eggs expenses. So I&#x27;m writing down this similar type off. You can say that comes which have similar balances together. Okay, liabilities, Captain. And live in new. Okay, so we understand that. What is the meaning of a set? Expenses Avenue Capital Liabilities. Okay. In gender loans, I said, is normal, which is recoverable from the customer. Okay. Expenses. The moment between card who were in the business. OK, like raw material, reprinting cartage like that. Like that. Okay, every news that which we used to refer, like, say, love virgin services for the customers. So it gives rise to the heavens capitalist investment amount, which is done by the older into the business. And liability is in contrast to sex, Like from liking it in case of a sex, we have to recover the amount from the customer in case of libraries, the business entity has to pay off their supplies. Okay, Now, let&#x27;s come to the type of balances a week into the balance. Okay. Sort of. Before violence, I&#x27;m going to write some of you may as that by assets and expenses have debit balances. Okay, tragic balance. Okay, so first of all, let&#x27;s understand that just a fall big, just a north of there that a certain expenses will have always 99.99%. Is this a debit balance? Libraries. Capital revenue will have 30 minutes. Okay. Some of Humira. Is that why you&#x27;re certain expenses? Will have never been sent by British capital. Renewable at record. So it does not need to be completed by that. So because it is, it is a science. It is a signs that accounting practitioners have that this so far. Okay, so you do not need to pose in 11 logics that why? Why do we have never talents and by credit balance for different types of accounts? Okay, it is just a matter of logic. Like in science, there is a concept of gravity. You cannot ignore it. Okay. To solve many problems in daily lives. That is why we have every pellet, 600 minutes. Make that. Okay. Now let&#x27;s come to the closing. Okay, so whatever comes, okay, What Mayweather comes will have never balances will be close to their respective vehicles or because of their respective destination accounts by giving, uh, plenty, but credit to them. Let&#x27;s suppose the import years and is it OK? So every assert will ever debit balance. Okay, Soto, close that account. The will transfer bank balance to in the article by giving up credit to a surgical. Okay, so Or alternatively, we can say that who close any account which app which is having independence. We will just hurt the credit. Okay. Berezin gets a parent billions, they will give up. Never put there just a project, that&#x27;s all. Okay, so no, what we have. So what have we done here for every expenses? If you&#x27;re having an average balance, so close that account, we will give a credit to that. Okay. So, for our current case for any type of expense lets insurance expense, insurance expense, grand thinking salary, any type of expense, Okay, Any night of expense, they will. They will be having never balance sort of closed down all of these accounts. We really just give or even crediting those accounts and give up their to income. Somebody had come for closure off Respect respective Occurs. OK, so for the current case, our choice has been identified. The correct choice has Bean. I didn&#x27;t defies there as choice be that visited expense Because then expensive will be crater. Who who give up closer to rank expense? I didn&#x27;t come. Somebody will be deputy. Okay, that&#x27;s all for other solution, So I speak the correct answer.

Puneet Prajapati · Answer

Okay, so we are going to understand the meaning, but money. What? Really? Okay, so they&#x27;re not actually three types of comes in accounting is the subject. Read account or cell accounting? No. Okay. However, for the current his reveal industry anteria. So it is a type of gold, Which will it be? Never drives in a very common okay. Be carried forward will be Get it from who won financially it who end of it. So So it is a type of account which is never transferred. Who and it did it go? Let&#x27;s get a mystic an important and will be carried forward always from money will one financial year two Although it seems that 1st 1 is most every day. However, you will understand that Kate forward from one financial year to end it. There will be the most important characteristic That would be useful useful for you. Identify that bitch Israel a condom, which is another type of Okay, So you&#x27;re right. Example. So really count is open If you can see what other types off we can support our that Ilocos most of all, fixed a spectacle when you purchase any type of much injury who produced the products in which the businesses dealing. Okay, It was the one that is dealing. So fixed asset is purchased to produce the 11 goods required course. Now, in that case, you can understand that fixes it once purchased will be used for any scrutiny in 20 years. Because it because it is a machine, it is not like that that you have purchasing Korean Peninsula. And it will be absurd in next year. That is not the case. Okay, so fix dissect, Okay. Furniture that is used in business. Okay. In my country, when trian just a raw material which we have parties from other supplier 100 internees. Okay, the list is exhaustive. I&#x27;m writing, though I&#x27;m writing there very relevant items on a very relevant items for which for which he opened the really Okay, So retained earnings retained. Earnings account is one of the account which is carried forward from one fund and Chilean. We can see current financial year two. Next fun. Incheon. Okay, Sort of damned earnings. Or alternatively, they can say retained earnings is a type of retained earnings is account, which is never closed. Okay, So at this time, sir, from current financial year do next. Venture you so our choice matches vit. You can see why would I&#x27;m certain matches with choice beat Retained earnings is never most, or we can see it is never It is for all sorts of current financial year. Two next financial year. Okay, so you can write on sheet number one only on being your pulls off each of your parents. However, the correct choices choice be okay, that&#x27;s all for other solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s start dissolution. Okay? First of all, I will I was state the five type of about us you do have throughout the abounding as a subject. Okay, so what? I&#x27;d be a sex? These are delicate drivel abounds. That&#x27;s cash. Listen, Wendy. What? Okay, the US Let&#x27;s suppose you are in the business of selling video games to customers. Are you went into business off? Oh, selling for rejecting your best of us. So let&#x27;s suppose your customer says that I will pay you after a certain period of time. Let&#x27;s do this so that mournful become recoverable awards. The comfortable means you have to recover that amount from your customer. So that will be considered as a sex Yes, like cash balance, maintaining that your business entity like which is deposited into banks. Also, the cashier bank. Also, bank accounts also will be considered as your cash in my country for which from which you produced finished words or weakens a saleable balls the job, you know. Oh, fit for selling to the customers. Apart from a six, we have live release. Okay, Able votes. Let us suppose our business is a customer for some moments and we have to be off them. Is this, uh, as a vendor? Or we can say we have purchasing goods from others of lions, but we have not paid yet. So that will become our liability. Because in that case, we have to pay off our suppliers for the benefits. The F away love. Okay, shark them short, long term debt. Okay, this is the first. This is the second. That&#x27;s 1/3 ago. Third type of the problems. We have capital, the finance Aries. But in case our finances what paper instruments? We do have to read defendants equity. You can write it down so that you can revise every later point in time whenever you get time to do it. Okay. Okay. Let&#x27;s move. Oh, here. Okay, So next is expenses, expenses. I think everyone will be familiar with expenses like telephone Any full expenses, any other, any of the expense liked only four business purpose nor 40% bump. It&#x27;s okay. And the last and the foremost. This could have been you since No. Okay, Kevin uses, but their income, like that Soviet five diaper comes and we have also, you know, stated some of the terms which would be classified as respective domes. Okay, for by their I will I&#x27;m giving you a diamond. Does diamond rules of accounting which would be applicable to our be accounting as a subject like they never They will be a financial trouble chip which involves exchange of goods and services against the money. So diamond rules off a car bingle be applicable to report such financial transaction in the books of occurrence of the company. Okay, so far, it&#x27;s truly is. Please write it down these rooms for a better revision off. You know, regarding the the logic behind regarding off journal entry. Okay, Ingres, in a sex expenses equals crude effort. Some of yours, some of your stories again, can reasonably Reese portion their baby are making a debit. Why not credit? Okay, you may have certain knows, but I&#x27;m clarifying these doubt that these are the traditional methods off doing or rewarding general entry. Okay, However, everyone raises this question but will be, you know, indirectly forced to follow these methods because these other tradition matters selective. It&#x27;s like just a science for mother. There is no ordinary definition do gravity that by the gravity holds okay. However, the litter cases may never be real face and a man&#x27;s problems we will make. We will make this very, very interesting through better examples. Real life examples so that it will not to come. You know, rigorous or boarding with a complex method to remember and just reproducing it on the paper. Okay. Have you tried to make it more interesting? Increasing captain Revenue equals to predict equals credit means whenever there will be increasing capital revenue. Library, please. Then we will predict the amount. So their respective account Okay, The reason capital there were new liabilities will be dabbling with at the moment. Okay, so these other diamond rules for five type of five type of vehicles whenever there will be increase or decrease in D ammo&#x27;s. Okay, So let&#x27;s move to our main solution regarding that. Okay, So which of the following account does not please with the deputy entry? Okay, so in case off, except he&#x27;s the except the three choices in case over daily earnings, it would be imprudent, actually. What happens? What is the part of returning? I tell you very, very, very, very briefly. Let&#x27;s suppose you have a profit off $10,000 during the car in gear. Okay? No. What happens? Retailing is include Oh, a different type of reserves. Different type of profit type of, you know, special reserves as possible revelatory. That included a varmints also. But the profit are large and you&#x27;re doing that year will be adjusted. Curator retained on things about and reduced earnings. The girls is especially included in the capital capital. Reflect that to the true position off financing capital in the company. So you&#x27;re doing dumb. Things will be included in capital. So from other diamond rules of accounting, you can see whenever there will be increasing capital. They will be a transforming credit. Not the epic I think you get You got this ready, right? Okay. Increasing capital will be a crowded slaughter. So the correct choice for the problem 30 is a by that. So because the portion asks that which of the falling against will not be increased by David. Okay, So accept the three. There will be only the journaling such people which will be in foreign capital. And they will not be any increase by, huh? There will be They will not be any increase in the beginning. The lynx spider. Never. They will be introduction and they&#x27;re doing that news. Okay, so I got a choice for for problem. For D is a Please make sure that you have noted down these the first sheet, like five type of coats in your in your notebook. Okay? Order. But that you have noted Diamond does of accounting to make sure that whenever you will face any time of the little dinner on things, you will get your solution at first hand with this with these rules. Okay. Forward by that. As a matter of elements, the Afghan I&#x27;ve never certain finesse but a choice as a Okay, So that&#x27;s all for dissolution. Thank you.

Puneet Prajapati · Answer

Okay, so we will draw this specimen off constraint mint. Okay, So the purpose off income stripping will be who enabled the entity toe understand that how much profit or loss they have generated within the current financial year. Okay, that is the sole purpose off. Come second. Apart from that, it does not. But it doesn&#x27;t serve any purpose just to check that. How much profit and loss. However, there is a different former we are going right now. Draw this on bigger notebooks for future reference. Okay, so first of all, we will move in basics. Okay, So is there are items okay, under which, or we can sit. There are eggs under which every, particularly, when will be a the YouTube. Okay, so Buster won&#x27;t be having every new if you consider the news. Okay, then we have expenses. So England news, we have mostly says, Okay, I didn&#x27;t know. However, engagement expenses. We have bossed off good sword and operating expenses, okay? And this cannot be done that elements of expenses will transfer there and elements off and elements off revenues will be transferred here, so this will be so this will be happily game. Okay, you cannot do this. So? So it will. Largely after giving get No. So you can brown inference from this specimen that we will have We have a new expenses. So I did differently. Okay. However, you can write what I have intensified, but our choice matches with Joyce D. That operating expenses cannot be aggregated on death at every news act. Because it isn&#x27;t. I come off expense. Okay, so Joyce is the correct answer.

Puneet Prajapati · Answer

Okay, So in the current case, we will understand that did. And how many types of oppose Okay, forward by that people in this time, they were pipe off balance. We have for each off the type of a campus. Okay, so those balances will be the four balances for those ACOs and in an actual Also, we have only five type of occam&#x27;s throughout the accounting as a subject okay, with. So I&#x27;m classifying the same little towns which will have similar different balances. Okay, so you&#x27;ve been right down this because it is one of the golden rules in accounting to classify. All came to understand the balance off so they don&#x27;t. Five typical five type of becomes, as initially, I have said First is a six second expenses. Hurley&#x27;s liabilities, second its capital and then is okay, so a certain expenses will all vase on Venice. The always it means 99.9% would have Deborah dependence. So there is 0.1% chance that it will a credit balance. It&#x27;s a very rare case. And the real cases, I will let you know, followed by the explanation. Okay, So I certain expenses will have de rebellions all the times, Okay. Except for today, with their names, liabilities, Capital and 11 move will always there splintered. But it&#x27;s some of you may think that Why my don&#x27;t liabilities step. Italy revenue will have balance and vice versa. So because this is the methodology, okay, the accounting practitioners have not picked. Okay, so we will not oppose logic that how thereby Canvey, you know, reversed the position off the balances for liberty capital revenue in the second expenses. Okay, so we will Lord give much of a single back and being generally just mugger it because in practice, this concept will be a living for us. Okay, They will live with logics when we will face practical problems. So these are the is these every five accounts we have and followed by that being in the air the type of business in divorce for each of the now what happens in the business? In a business, there is a gender statement every convicted. Okay, So business is actually established. The one the prophet, if there is no profit, so there will be no use case off the business. OK, so this is mostly the critic site, and this is mostly the damage. So we have just seen on the never excited what we have. We have expenses. So this is the statement on a cold day Generally prepares, okay, To arrive at the profit or loss MIT Mir at the end of an engineer. So sail off goods and services. And this is the new site, which comprise off sale of virgins. Have something with business in which business under Dean&#x27;s okay, expenses could be the all material And like vice. Okay. Okay. So you know what happens now? What happens then? When accounting, Right. All of the items under that big site as well. It&#x27;s good. It&#x27;s a So the counting does not understand this. Really? Vincey. So it transferred all of the items in the in the statement income somebody account. If you consider income. Somebody on the north comes from here. Okay? Income. Somebody who are either deep profit thought knows made at the end of Okay, so we haven&#x27;t destroyed this, That I think that exactly will record our expenses. What we haven&#x27;t heard on the profit. And I think that inside we will write the sale items like that bottom old. For what amount? We have sold our goods and services to our customers. And all of the items in this statement will be closed or begins with people transfer. All of that comes to income. Somebody no more happens. Who plans for the amount? What happens if their revenues having a credit sales? Okay, so every item on the credit side will be debited next door. That idea. Okay. Next, Right here. And you can also record down. So that would be better for your future reference. So I&#x27;m writing with a green pen. Okay for closing. So close the items on the credit side vehemently. De pick those items and give up the rest. Forming credit to income. Saudi is there a Kia? Okay. And to close the items on the very day woodside variable. But I didn&#x27;t those items and give up the responding income somebody. It is just the oppose it off. What? Hear what you have done. Okay, so we can also write it like lettuce opposed. A certain expenses are having never balances. So I&#x27;m writing down with the right penned that what we have to do to close down the accounts. Okay, so we will credit. He could be a sitting expense. Typically in going somebody who lose their state and expensive. And we will Look, David E liabilities Capital have been who closed down to the income somebody. Okay, so what we have in our solution also. So our solution for current Kocian matches with choice deep. Okay, So to close down, the fees are Okay, we will close down, do the income summary. Okay? Because all of the items in this statement will be closed down too. Income. Somebody here. Okay, so that solution matches with choice d. That&#x27;s all part of a solution.

Problem

Which account would be credited when closing the …

Problem 8 Hard Difficulty

Which of these accounts is never closed?
A. Prepaid Rent
B. Income Summary
C. Rent Revenue
D. Rent Expense

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting