Question

Which of the following accounts will have an ending balance after the closing process is completed? A) Owner's Name, Withdrawals B) Rent Expense

Answer 1

Answer: The correct answer is B (Rent Expense)

Step-by-step explanation:

At the end of every financial year, closing entries are passed for all expenses and income account. Other accounts including account of assets and liabilities are to be carried over to the next year. Hence they will not have an ending balance.

Rent expense is an interest account where income or expense will not contain any balance as all the nominal account are transferred to the trading and manufacturing account by passing the closing entries.