Revenue and expense accounts are permanent accounts because they always appear on the income statement.

Question

Quizplus · Accepted Answer

Revenue and expense accounts are actually temporary accounts because they are closed at the end of each accounting period and their balances are transferred to the retained earnings account. The only permanent accounts are asset, liability, and equity accounts, which carry forward their balances from one accounting period to the next.

Revenue and Expense Accounts Are Permanent Accounts Because They Always