Question

All of the following accounts must be closed at the end of the accounting period except:

		Service Revenue
		Unearned (deferred) revenue
		Dividends
		Utilities Expense

Answer 1

Solution:

At the ending of accounting period all income is transferred to income summary account. All the expenses also transferred to summary account.

Difference of income and expenses is transferred to retained earnings by debiting or crediting to income summary.

Any dividend payment Is there than retained earnings is debited and dividend account is credited and closed.

As per the above, It means all the expenses and revenue is closed at the end of period and in last dividend account is also closed because these are the temporary account

There is no closing of Assets & Liabilities account at the end of period because they are permanent accounts.

From the given data Unearned (deferred) revenue is came under current liabilities so this is not closed at the end of period.

Answer = Option 2 = Unearned (deferred) revenue