O-LevelAccountingPreparation of financial statements7707/12 · Oct/Nov 2024 · Q171 Mark
Abdul is a trader. He rents out part of his warehouse to other businesses. Abdul is preparing his financial statements for the year ended 31 December. His rental income account shows that: rent received during the year totalled $2750 rental income transferred to the income statement was $3000 What does the closing balance on the rental income account represent?
Aaccrued income
Ban accrued expense
Can expense paid in advance
Dincome received in advance
✓ Correct answer
A: accrued income
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