What permanent accounts do not close at the end of the year?

Question

Assets, liabilities, and expenses

Assets, liabilities, and withdrawals

Revenues, expenses, and capital

Assets, liabilities, and capital

Answer 1

The permanent accounts that do not close at the end of the year are assets, liabilities, and capital.

Permanent accounts are those that carry their balances into the next accounting period and are not reset to zero at year-end. In contrast, temporary accounts, such as revenues, expenses, and withdrawals, are closed at the end of the accounting period to prepare for the next period’s accounting.