Which one of the following accounts would not be closed at the end of the accounting year?
A)Utilities expense.
B)Sales revenue.
C)Prepaid rent.
D)Wages expense.

Question

Quizplus · Accepted Answer

Prepaid rent is an asset account representing payments made for rent before the rental period has occurred. It is not closed at the end of the accounting year because it reflects a future benefit, unlike revenue and expense accounts which are closed to determine the period's net income.

Which One of the Following Accounts Would Not Be Closed