Asked by Adrian Barrera on May 19, 2024

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Which of the following account balances would not be affected by closing entries?

A) Interest expense.
B) Accumulated depreciation.
C) Treasury stock.
D) Retained earnings.

Treasury Stock

An alternative term for treasury shares, referring to stocks that a company has repurchased and holds, reducing the amount of outstanding stock on the market.

Closing Entries

Made at the end of the accounting period to transfer balances in temporary (income statement) accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts for beginning the next accounting period.

Account Balances

The total amount of money in an account at a certain point in time, which can represent assets or liabilities depending on the account type.

  • Distinguish between permanent and temporary accounts and their roles in the accounting cycle.
  • Identify accounts that are affected by closing entries and those that are not.
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BR
Briana RamosMay 23, 2024
Final Answer :
B
Explanation :
Accumulated depreciation is a contra-asset account that is not affected by closing entries. Closing entries only affect revenue, expense, and dividend accounts, as well as retained earnings.