QuestionAugust 27, 2025

Which account would be credited when closing the account for rent expense for the year? A Prepaid Rent B Rent Expense C Rent Revenue D Unearned Rent Revenue

Which account would be credited when closing the account for rent expense for the year? A Prepaid Rent B Rent Expense C Rent Revenue D Unearned Rent Revenue
Which account would be credited when closing the account for rent expense for the year? A Prepaid Rent B Rent Expense C Rent Revenue D Unearned Rent Revenue

Solution
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Answer

B Rent Expense Explanation 1. Identify the account to be closed Rent Expense is an expense account that needs to be closed at the end of the year. 2. Determine the closing entry Closing entries involve transferring balances from temporary accounts to permanent accounts. Rent Expense is a temporary account. 3. Credit the Rent Expense account To close Rent Expense, you credit Rent Expense and debit Income Summary or Retained Earnings.

Explanation

1. Identify the account to be closed<br /> Rent Expense is an expense account that needs to be closed at the end of the year.<br /><br />2. Determine the closing entry<br /> Closing entries involve transferring balances from temporary accounts to permanent accounts. Rent Expense is a temporary account.<br /><br />3. Credit the Rent Expense account<br /> To close Rent Expense, you credit Rent Expense and debit Income Summary or Retained Earnings.
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