Which of the following is true concerning temporary and permanent accounts?

Question

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Temporary accounts represent activity during a specific period, usually one fiscal year, while permanent accounts represent activity over the entire life of the company. Permanent accounts are not closed at the end of a reporting period, while temporary accounts are closed to transfer their balances to the retained earnings account. Cash is a permanent account, as it represents an asset that the company holds over time. Option D is incorrect because the period covered by temporary accounts varies depending on the reporting period.

Which of the Following Is True Concerning Temporary and Permanent