Permanent accounts are also known as real accounts, which are the Balance Sheet accounts that carry forward their year-end balances into the next accounting period. They are not closed or zeroed-out at the end of the year like temporary accounts, which include income statement accounts like revenues and expenses. Therefore, option D is the correct answer.

Solved

Permanent Accounts

Question 196

Multiple Choice

Permanent accounts:

A) are not permitted under GAAP .
B) have their balances zeroed-out at the end of each accounting year.
C) do not have their year-end balance carried into the next year.
D) are Balance Sheet accounts.

Correct Answer: