Assets, liabilities, and retained earnings are permanent accounts that are closed at the end of the accounting period.

Question

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Assets, liabilities, and retained earnings are not closed at the end of the accounting period. They carry over to the next accounting period and are reported on the balance sheet. Only temporary accounts, such as revenue, expenses, and dividends, are closed at the end of the accounting period to prepare for the next period's financial statements.

Assets, Liabilities, and Retained Earnings Are Permanent Accounts That Are