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Which of the following account balances would not be closed at year-end by debiting the account?

1) Unearned revenue
2) Interest revenue
3) Gain on sale of building
4) Sales revenue

1 Answer

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Final answer:

Unearned revenue would not be closed at year-end by debiting the account. It is a liability account that represents an obligation to provide goods or services in the future.

Step-by-step explanation:

Out of the given options, Unearned revenue would not be closed at year-end by debiting the account.

Unearned revenue represents the money received by a business in advance for goods or services that have not yet been delivered. It is a liability account that represents an obligation to provide the goods or services in the future.

At year-end, unearned revenue is typically closed by crediting the account, not by debiting it. This is done to recognize the revenue as earned and move it from a liability account to a revenue account.

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