Which of the following accounts would not appear in a closing entry?
A) Net income
B) Depreciation expense
C) Cost of goods sold
D) Inventory
E) Both A and D

Question

Quizplus · Accepted Answer

Net income is not an account that appears in a closing entry; it is the result of the income statement that is closed to Retained Earnings. Inventory is a balance sheet account and does not get closed to Retained Earnings at the end of the accounting period.

Which of the Following Accounts Would Not Appear in a Closing