Question

Which one of the following accounts is closed at the end of an accounting period?

A) Retained Earnings
B) Dividends
C) Unearned sales revenue
D) Accumulated depreciation

Answer 1

The Dividends account is closed at the end of an accounting period.

Step-by-step explanation:

The correct answer is B) Dividends. Dividends is the account that is closed at the end of an accounting period.

Dividends are payments made by a corporation to its shareholders as a distribution of profits. These payments reduce the company's retained earnings and are generally recorded as a debit to the Dividends account and a credit to Cash or Retained Earnings.

For example, if a company pays $10,000 as dividends to its shareholders, the Dividends account will be debited by $10,000 and Cash or Retained Earnings will be credited by $10,000.