Which of the Following Account Balances Would Be Closed at Year-End

question 125

Multiple Choice

Which of the following account balances would be closed at year-end?

• A)Interest expense.
• B)Accumulated depreciation.
• C)Retained earnings.
• D)Unearned revenues.

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Annual Interest Paid

The total amount of interest a borrower pays to lenders over the course of one year, often related to loans or bonds.

Bondholders

Individuals or institutions that hold debt securities issued by governments or corporations, entitling them to receive fixed interest payments.

Carrying Amount

The book value of assets and liabilities that are reported on the balance sheet; it's determined by the original cost minus any depreciation, amortization, or impairment costs.