Final answer:
It is false that balance sheet accounts are closed at the end of the period during the closing process. Only temporary accounts like revenues, expenses, and dividends are closed, not balance sheet accounts. Balance sheet accounts are permanent accounts and are not zeroed out during the closing process.
Step-by-step explanation:
The statement that balance sheet accounts are closed and end the period with a zero balance during the closing process is false. The accounts that typically are closed and zeroed out at the end of an accounting period are temporary accounts such as revenues, expenses, and dividends. These are transferred to retained earnings, a balance sheet account, which reflects the cumulative earnings of a company not distributed to shareholders and not part of the closing process.
In accounting, the closing process involves transferring the balances of these temporary accounts to a permanent equity account on the balance sheet, known as retained earnings. This is done via the income summary account, which is used to ensure the books are balanced. Balance sheet accounts like assets, liabilities, and permanent equity accounts are not closed.