At the end of the accounting period, the dividends account is not closed as it is a permanent account.

Name: At the end of the accounting period, the dividends account is not closed as it is a permanent account.
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The dividends account is actually a temporary account that is closed at the end of the accounting period to the retained earnings account, as it represents distributions to shareholders that are not retained by the company for future use.

At the End of the Accounting Period, the Dividends Account