XACC 280 Week 5 DQ 2

Question:
After examining Illustration 4-5 on p. 151 of Financial Accounting, what do you consider might happen if
o Revenue accounts are not closed? Explain Why
o Expense accounts are not closed? Explain why
Dividends were not closed? Explain why
Response 1
Revenue, Expense, and Dividend accounts are all closed at the end of the period to allow the balances in those accounts to be seen in another account like the asset and liability accounts.
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