Closing the temporary accounts at the end of each accounting period does all of the following except:
A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
B) Prepares the withdrawals account for use in the next period.
C) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.
D) Brings the revenue and expense accounts to zero balances.
E) Has no effect on the owner's capital account.

Question

Quizplus · Accepted Answer

Closing temporary accounts affects the owner's capital account by transferring net income or loss and withdrawals, thus it does not have no effect on it.

Closing the Temporary Accounts at the End of Each Accounting