PRC-1 · Chapter 3 · Question 6 of 100
At the end of the financial year, which of the following groups of account balances will be carried forward to the next accounting period rather than being closed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Assets, Liabilities, and Capital
Explanation
At the end of the reporting period, income, expenses, and drawings are closed to the Capital account. Balances on asset, liability, and capital accounts are not closed; they are carried forward to become the opening balances for the next period.
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