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It's a real account. Easy way to remember it is by remembering the accounting formula. Assets= Liabilities+ Capital- Withdrawals+ Revenue- Expenses Withdrawals, Revenue and Expenses are temporary and get closed at the end of the accounting cycle. Since Accumulated Depreciation falls under the Assets account and is a contra asset
It would be closed to this summary. This is because they are considered a form of contra revenue accounts.
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
A account that has closed permanently is when a account has been closed forever basically.
The wording "Account closed by consumer" means that "you", and not the lender, closed the account. It usually indicates that there was no problem on "your" behalf with the account.
It's a real account. Easy way to remember it is by remembering the accounting formula. Assets= Liabilities+ Capital- Withdrawals+ Revenue- Expenses Withdrawals, Revenue and Expenses are temporary and get closed at the end of the accounting cycle. Since Accumulated Depreciation falls under the Assets account and is a contra asset
When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.
It would be closed to this summary. This is because they are considered a form of contra revenue accounts.
The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
Accounts may be closed out for various reasons, such as when a customer requests to close their account, when the account becomes inactive or dormant, or when the account holder passes away. Additionally, accounts may be closed out by the bank or financial institution for reasons such as non-compliance with account terms, fraudulent activities, or a decision to terminate a particular product or service.
The most common ones are Revenue (income) and Expenses. These accounts are closed out (because they are temporary) and affect the Net Income which in turn affects Retained Earnings, which is listed on the Balance Sheet. To try and explain "why" is because temporary accounts are used to figure either Net Profit or Net loss. They are closed out leaving them with a balance of $0. At the end of the period in which we choose (usually monthly for income) we We close out our expense accounts in order to figure our monthly Net Profit or Loss. Revenue and Expenses affect only our Income Statement and our Statement of Retained Earnings.
A account that has closed permanently is when a account has been closed forever basically.
The wording "Account closed by consumer" means that "you", and not the lender, closed the account. It usually indicates that there was no problem on "your" behalf with the account.
Debit or debt? If debt, no. Revenues and debts are two separate entities. Revenues can be offset by debts, but doesn't mean revenues will be affected. If you are referring to debits, those reflect a decrease in credits or assets (or bank balance) and again, are no reflection on revenue. Revenue accounts aren't part of the balance sheet and are used to denote income to the business, as well as expenses that the business incurs. The income statements are closed each month, with the total being transferred to the balance sheet. Entering a debit to an income account decreases the value of that account. Usually income accounts receive revenue, so a debit entry would be unusual.
Post closing trial balance contains all accounts that have not been closed (i.e assets, liabilities and owners equity accounts) The PCTB does not contain Net Income or even Gross Income, but instead contains "Retained Earnings" Retained earnings is what the company clears after all expenses and stock dividends (if any) have been paid. Or put simply, all general ledger accounts that are not "closed". GAAP formula for figuring the different types of Revenue are: Gross Revenue (income) - Expenses = Net Revenue (income) Net Revenue (income) - Dividends paid on Stock (if applicable) = Retained Earnings
Which of the following accounts will be closed to the Capital account at the end of the fiscal year?
No, the account is closed.