Which of the following accounts is a temporary account?
A) Prepaid Insurance
B) Unearned Subscriptions Revenue
C) Retained Earnings
D) Subscription Revenue

Question

Quizplus · Accepted Answer

Subscription Revenue is a temporary account as it is used to record revenue earned from subscriptions that will expire or be fulfilled in the future. It will be closed out at the end of the accounting period and its balance will be transferred to the Retained Earnings account. Prepaid Insurance and Unearned Subscriptions Revenue are both examples of current liabilities and are considered balance sheet accounts. Retained Earnings is a permanent account that records the cumulative earnings of the company.

Which of the Following Accounts Is a Temporary Account