Which of the Following Accounts Would Not Be Closed at the End

question 17

Multiple Choice

Which of the following accounts would not be closed at the end of each fiscal year?

• A) Fund balance.
• B) Estimated revenues.
• C) Interfund transfers out.
• D) Expenditures.

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Definitions:

Net Income

The company's net income following the deduction of all costs and taxes from the total income.

Income Summary

An account to which the revenues and expenses are transferred in order to close the books; it reflects the net income or loss at the end of a period.

Owner's Capital Account

An account on a company's balance sheet that represents the owner's investment and retained earnings in the business.

Credit Balance

This represents the amount that a company or individual owes to creditors; in accounting, it indicates a balance on the right side of a ledger.