Identify the accounts below that are ALL classified as temporary accounts.
A) Wages Expense,Accumulated Depreciation,Fees Income
B) Accounts Receivable,Depreciation Expense,Fees Income
C) Owner's Drawing,Depreciation Expense,Income Summary
D) Owner's Drawing,Owner's Capital,Income Summary

Question

Quizplus · Accepted Answer

Temporary accounts are accounts that are closed at the end of a fiscal period. Owner's Drawing and Income Summary accounts are always temporary accounts. Depreciation Expense is also a temporary account because it accumulates during the fiscal period and is then reset to $0 at the end of the fiscal period. However, Owner's Capital is a permanent account because it is not closed at the end of the fiscal period but carries forward to the next fiscal period. Therefore, choice D is incorrect. Accounts Receivable is also a permanent account because it is an asset account that carries forward to the next fiscal period. Fees Income is a revenue account, which is a temporary account that closes at the end of the fiscal period. Accumulated Depreciation is a contra-asset account classified as permanent because it carries forward to the next fiscal period. Finally, Wages Expense is a temporary account because it closes at the end of the fiscal period. Therefore, choice A is incorrect.

Identify the Accounts Below That Are ALL Classified as Temporary