In fictitious revenue schemes, what happens to revenue accounts at the end of the accounting period?

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Multiple Choice

In fictitious revenue schemes, what happens to revenue accounts at the end of the accounting period?

Explanation:
Revenue accounts are temporary and must be reset at period end. They accumulate income for the period, but when the books are closed, their balances are transferred out (to income summary and then to retained earnings) so these accounts start the next period with a zero balance. This closing step doesn’t involve moving cash or writing off items; it’s simply the process of resetting the revenue accounts to prepare for the new accounting period.

Revenue accounts are temporary and must be reset at period end. They accumulate income for the period, but when the books are closed, their balances are transferred out (to income summary and then to retained earnings) so these accounts start the next period with a zero balance. This closing step doesn’t involve moving cash or writing off items; it’s simply the process of resetting the revenue accounts to prepare for the new accounting period.

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