O'Reilly logo

Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

EXERCISE 4-4

Purpose: (L.O. 2) This exercise will give you practice in identifying those accounts which are closed at the end of the accounting period and those accounts which are not closed.

Instructions

Indicate whether the following accounts would or would not be closed at the end of the accounting period by placing an “X” in the appropriate column.

TIP: Remember the general rule: All nominal accounts (revenues, expenses, and dividends) are closed and all real accounts (assets, liabilities, common stock, and retained earnings) are not closed. Therefore to determine if an account will be closed or not closed, analyze the classification of the account.

TIP: Nine of the following are nominal or temporary accounts; eleven are real or permanent accounts.

images

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required