Which of the following accounts will not be closed to the capital account at the end of the year?
A) Utilities Expense
B) Fees Earned
C) Prepaid Insurance
D) Insurance Expense

Question

Quizplus · Accepted Answer

Prepaid Insurance is an asset account, not an expense or revenue account, and thus it is not closed to the capital account at the end of the year. It represents payments made for insurance coverage that extends beyond the current year, so it remains on the balance sheet.

Which of the Following Accounts Will Not Be Closed to the Capital