Which of the following statements about closing the accounts is NOT true?
A) Sales revenue account is debited.
B) Depreciation account is credited.
C) Share capital is debited.
D) A profit is credited to the retained profits account.

Question

Quizplus · Accepted Answer

Share capital is not closed at the end of the accounting period since it is a permanent account. It is not closed because it represents the owners' investments in the company which are not affected by the company's operations during the period. Therefore, option C is not true.

Which of the Following Statements About Closing the Accounts Is