A cash account is referred to as a permanent account because it is:
A) an asset flowing into the statement of owner's equity.
B) an asset around for the life of the business.
C) an asset with a physical presence.
D) an asset or liability permanently held in the account at the bank.

Question

Quizplus · Accepted Answer

permanent accounts are assets, liabilities and owner's equity, and are called permanent accounts as they are used for the life of the business

A Cash Account Is Referred to as a Permanent Account