Which of the following account balances would not be closed at year-end by debiting the account?
A)Interest revenue.
B)Gain on sale of building.
C)Sales revenue.
D)Unearned revenue.

Question

Quizplus · Accepted Answer

Unearned revenue is a liability account, which means it represents cash received from customers for goods or services that have not yet been provided. Since it is a liability, it would not be closed by debiting the account at year-end. Instead, we would credit the account to reduce the balance as the revenue is earned and recognized. The other accounts, interest revenue, gain on sale of building, and sales revenue, are all examples of revenue accounts that would be closed at year-end by debiting the accounts.

Which of the Following Account Balances Would Not Be Closed