Which of the following accounts should not be closed?
A)Expenses and revenues.
B)Dividends.
C)Income summary.
D)Accumulated depreciation.

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra-asset account that shows the total amount of depreciation that has been charged against an asset. It should not be closed, as it is an ongoing account that carries forward each period to calculate the book value of the asset. Closing expenses and revenues, dividends, and income summary are all necessary steps in the accounting cycle.

Which of the Following Accounts Should Not Be Closed