PRC-1 · Chapter 3 · Question 7 of 100
Which of the following accounts of 'Skyline Services' must be formally closed to the statement of comprehensive income at the year-end?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rent Expense account
Explanation
Income and expense accounts must be closed to the statement of comprehensive income (profit or loss) at the end of the year. Assets like Prepaid Rent, Trade Receivables, and Motor Vehicles have their balances carried forward.
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