Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Closing Entries

Financial Accounting

3. Accrual Accounting Concepts

Closing Entries

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Multiple Choice

At closing, the seller would be credited for which of the following?

Title insurance fees

The sales price of the property

Unpaid property taxes

Recording fees for the deed

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Verified step by step guidance

Understand the concept of 'closing' in a real estate transaction. Closing is the final step in the property sale process where ownership is transferred from the seller to the buyer, and financial obligations are settled.

Identify the items listed in the problem: title insurance fees, the sales price of the property, unpaid property taxes, and recording fees for the deed. Determine which of these items would result in a credit to the seller.

Recall that a credit to the seller represents an amount that the seller is entitled to receive or is reimbursed for during the closing process. Typically, this includes the sales price of the property, as it is the agreed-upon amount the buyer pays to the seller for the property.

Analyze the other items listed: title insurance fees, unpaid property taxes, and recording fees for the deed. These are generally expenses or obligations that the seller or buyer must pay, rather than amounts credited to the seller.

Conclude that the sales price of the property is the correct item that the seller would be credited for at closing, as it represents the payment for the property being sold.