Which of the following are temporary accounts that are closed at the end of the year?
A) assets, liabilities, and dividends
B) revenues, expenses, and dividends
C) assets, liabilities, and stockholders' equity
D) revenues, expenses, and stockholders' equity

Question

Quizplus · Accepted Answer

Revenues and expenses are temporary accounts as they are closed at the end of the year to determine the net income or loss for the period. Dividends are also a temporary account, as they are only paid out to shareholders during the year and then reset to zero at the end of the year. Assets, liabilities, and stockholders' equity are all considered permanent accounts, as they carry over from year to year.

Which of the Following Are Temporary Accounts That Are Closed