Which of the following accounts' balance is carried forward to the next accounting period?
A) Accumulated Depreciation
B) Depreciation Expense
C) Dividends
D) Service Revenue

Question

Quizplus · Accepted Answer

Accumulated Depreciation is a contra-asset account that reflects the total amount of depreciation expenses that have been recorded since the asset was acquired. As a contra-asset account, its balance is carried forward to the next accounting period. Option B, Depreciation Expense, is an expense account that is closed at the end of the accounting period and not carried forward. Option C, Dividends, is a distribution of earnings to shareholders and reduces retained earnings; it is not carried forward to the next accounting period. Option D, Service Revenue, is a revenue account that reflects the income earned by the company during the accounting period and is closed at the end of the period.

Which of the Following Accounts' Balance Is Carried Forward to the Next