Of the following six accounts,which ones have temporary balances?
(1)Service Revenue
(2)Dividends
(3)Salaries Expense
(4)Common Stock
(5)Retained Earnings
(6)Cash

Question

Of the following six accounts,which ones have temporary balances? 
(1)Service Revenue
(2)Dividends
(3)Salaries Expense
(4)Common Stock
(5)Retained Earnings
(6)Cash

Quizplus · Accepted Answer

Temporary accounts are accounts that are closed at the end of the accounting period and have a balance of zero. Service Revenue and Salaries Expense are examples of revenue and expense accounts, respectively, that have temporary balances. Dividends are also considered temporary accounts because they represent distributions of earnings to shareholders and are closed out at the end of the period. Common Stock, Retained Earnings, and Cash are all examples of permanent accounts that have balances that carry over from one accounting period to the next.

Of the Following Six Accounts,which Ones Have Temporary Balances