Which of the following accounts is considered a temporary or nominal account? A. Fees Earned Revenue B. Prepaid Advertising C. Unearned Service Revenue D. Prepaid Insurance

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1MC

Which of the following accounts is considered a temporary or nominal account?

A. Fees Earned Revenue

B. Prepaid Advertising

C. Unearned Service Revenue

D. Prepaid Insurance

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

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Answer 2

Textbook Question

Chapter 5, Problem 1MC

Which of the following accounts is considered a temporary or nominal account?

A. Fees Earned Revenue

B. Prepaid Advertising

C. Unearned Service Revenue

D. Prepaid Insurance

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

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Answer 3

Textbook Question

Chapter 5, Problem 1MC

Which of the following accounts is considered a temporary or nominal account?

A. Fees Earned Revenue

B. Prepaid Advertising

C. Unearned Service Revenue

D. Prepaid Insurance

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

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Answer 4

Textbook Question

Chapter 5, Problem 1MC

Which of the following accounts is considered a temporary or nominal account?

A. Fees Earned Revenue

B. Prepaid Advertising

C. Unearned Service Revenue

D. Prepaid Insurance

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

Answer 8

Expert Solution & Answer

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account

Answer to Problem 1MC

Fees Earned Revenue

Explanation of Solution

Explanation for correct answer:

All Revenues are temporary accounts. Hence the correct option is A.

Explanation for incorrect answers:

B. This account is not a temporary account. Hence this option is incorrect.

C. This account is not a temporary account. Hence this option is incorrect.

D. This account is not a temporary account. Hence this option is incorrect.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept introduction:

Closing entries are prepared after preparing the adjusted trial balance. In the process of closing entries following steps are follows in the form of journal entries:

Closing all revenue accounts by debiting the revenue accounts and crediting Income Summary Account.
Closing all expenses by debiting the Income Summary accounts and crediting all expenses accounts.
Closing the net income by debiting the Income Summary accounts and crediting Capital or Retained earrings account.
Closing the withdrawals accounts by debiting the Capital or Retained earrings account and crediting the withdrawal account.

To choose:

The temporary account