Unearned revenue is closed to the income summary account at the end of the accounting period.
举一反三
- Unearned revenue is closed to the income summary account at the end of the accounting period. A: 正确 B: 错误
- Income summary does not need to be closed at the end of accounting period.
- Which of the following statements about temporary account is not correct: A: All temporary accounts are closed at the end of each accounting period. B: In the post-closing trial balance, the temporary accounts are reset to zero ending balances. C: Revenue and owner’s capital account are examples of temporary accounts. D: Income summary is a temporary account used for the closing process.
- In the case of unearned revenue, the adjusting entry at the end of the period includes a credit to Service Revenue. Assume the unearned revenue is initially recorded as a liability.
- Unearned revenue is reported in the financial statements as: A: A liability on the balance sheet. B: A revenue on the balance sheet. C: An unearned revenue on the income statement. D: An asset on the balance sheet.