Which of the following account balances would be closed at year-end?

  1. Interest expense
  2. Accumulated depreciation
  3. Retained earnings
  4. Unearned revenues

Answer a. Interest expense

Explanation: Interest expense identifies with the expense of acquiring cash. It is the value that a moneylender charges a borrower for the utilisation of the lender’s cash. On the income statement, interest expenses can address the cost of getting cash from banks, other sources, and bond investors.

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