One purpose of closing entries is to give zero balances to some accounts. Some accounts are not closed during the closing process. The __________ should have a zero balance and the __________ should not have a zero balance during the closing process.

Question

liabilities; withdrawals

liabilities; expenses

revenue; capital

assets; withdrawals

Answer 1

The correct completion of the sentence is:

revenue; capital

During the closing process, revenue accounts are closed to bring their balances to zero, while capital (or equity) accounts do not get closed and should reflect the cumulative amounts.