Which of the following accounts should be closed to the capital account at the end of the year?
A) Service Revenue
B) Equipment
C) Prepaid Insurance
D) Unearned Rent

Question

Quizplus · Accepted Answer

Service Revenue is an income statement account that is closed to the capital account (or owner's equity) at the end of the fiscal year to reflect the company's earnings from services provided. Equipment and Prepaid Insurance are asset accounts, and Unearned Rent is a liability account; none of these are closed to the capital account.

Which of the Following Accounts Should Be Closed to the Capital