Question

If a business closes its accounts only at year-end

Answer 1

Answer:

The correct answer is letter "D": Revenue and expense accounts reflect year-to-date amounts throughout the year.

Explanation:

Most firms close their accounts by the end of the year because of accounting reporting purposes. It does not imply throughout the year the firm will not be able to make reports of their performance. They actually can but closing the account relevant for the report requested. By closing the accounts only by the end of the year, the revenue and expense accounts will show annual calculations in the upcoming period books.