Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal year?
A)Utilities Expense
B)Fees Earned
C)Prepaid Insurance
D)Insurance Expense

Question

Quizplus · Accepted Answer

Prepaid Insurance is an asset account representing payments made in advance for insurance services. It is not closed to Retained Earnings at the end of the fiscal year because it reflects a future benefit, unlike revenue and expense accounts which are closed to reflect the period's net income or loss.

Which of the Following Accounts Will Not Be Closed to Retained