Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal year?
Utilities Expense

Prepaid Insurance

Fees Earned

Insurance Expense

Respuesta :

Answer:

Prepaid Insurance

Step-by-step explanation:

Prepaid Insurance will not be closed to Income summary

The prepaid insurance is to be reported in the balance sheet because the benefits will be received in the future. It will not be closed to Income summary account.

Whereas, fees earned, Insurance expense and utilities expense are closed to income summary and finally income summary transferred to Retained Earnings.

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