Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Closing Entries

Financial Accounting

3. Accrual Accounting Concepts

Closing Entries

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Multiple Choice

Which of the following accounts is NOT closed at the end of the accounting period?

Salaries Expense

Dividends

Retained Earnings

Service Revenue

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Verified step by step guidance

Understand the concept of closing entries: At the end of an accounting period, temporary accounts (such as revenues, expenses, and dividends) are closed to transfer their balances to permanent accounts, typically Retained Earnings.

Identify temporary accounts: Temporary accounts include Service Revenue, Salaries Expense, and Dividends. These accounts are closed because their balances are only relevant for the current accounting period.

Recognize permanent accounts: Permanent accounts, such as Retained Earnings, are not closed at the end of the accounting period. Their balances carry forward to the next period.

Analyze the given options: Salaries Expense, Dividends, and Service Revenue are temporary accounts, while Retained Earnings is a permanent account.

Conclude that Retained Earnings is the correct answer because it is a permanent account and is NOT closed at the end of the accounting period.