Which of the following account balances would not be affected by closing entries?
A)Interest expense.
B)Accumulated depreciation.
C)Dividends.
D)Retained earnings.

Question

Quizplus · Accepted Answer

Closing entries are used to transfer the balances of temporary accounts (such as revenue, expense, and dividend accounts) to the Retained Earnings account. Since accumulated depreciation is a contra asset account that is used to reduce the value of an asset, it is not a temporary account and would not be affected by closing entries.

Which of the Following Account Balances Would Not Be Affected