Asked by Annie Mueller on May 19, 2024
Verified
Which of the following accounts would not be included in the closing process at year-end?
A) Rent expense.
B) Sales revenue.
C) Additional paid-in capital.
D) Cost of goods sold.
Additional Paid-In Capital
The amount of capital received from investors for stock, over and above the par value of the shares issued.
Rent Expense
The cost incurred by a business to utilize property or equipment for operational purposes over a certain period.
- Recognize the differences between fixed and temporary accounts and their contributions to the accounting cycle.
- Recognize which accounts are influenced by closing entries and which are not.
Verified Answer
WR
William RoddyMay 23, 2024
Final Answer :
C
Explanation :
Additional paid-in capital is a permanent account that is not closed at year-end. Rent expense, sales revenue, and cost of goods sold are all temporary accounts that are closed at year-end to prepare for the next accounting period.
Learning Objectives
- Recognize the differences between fixed and temporary accounts and their contributions to the accounting cycle.
- Recognize which accounts are influenced by closing entries and which are not.
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