Which of the following accounts would be closed by posting a debit to it at the end of the accounting period?

• A. Service Revenue
• B. Dividends
• C. Salaries Expense
• D. Accumulated Depreciation

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of closing entries. Closing entries are made at the end of an accounting period to transfer balances from temporary accounts (revenues, expenses, and dividends) to permanent accounts (retained earnings). Temporary accounts are closed to reset their balances to zero for the next accounting period.
2. Step 2: Identify the nature of each account listed in the problem. Service Revenue is a temporary account representing income earned during the period. Dividends are a temporary account representing distributions to shareholders. Salaries Expense is a temporary account representing costs incurred during the period. Accumulated Depreciation is a permanent account representing the total depreciation of assets over time.
3. Step 3: Determine the closing process for temporary accounts. Temporary accounts are closed by transferring their balances to the retained earnings account. For revenue accounts like Service Revenue, a debit entry is made to reduce the account balance to zero. For expense accounts like Salaries Expense, a credit entry is made to reduce the account balance to zero. For Dividends, a credit entry is made to close the account.
4. Step 4: Analyze the question's requirement. The question asks which account would be closed by posting a debit to it. Since Service Revenue is a revenue account, it is closed by posting a debit to reduce its balance to zero. Dividends and Salaries Expense are closed by posting credits, and Accumulated Depreciation is not closed because it is a permanent account.
5. Step 5: Conclude that Service Revenue is the correct answer because it is a temporary account closed by posting a debit to it at the end of the accounting period.