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

Question

Quizplus · Accepted Answer

Revenue and expense accounts are temporary accounts because they are closed at the end of each accounting period and their balances are transferred to the retained earnings account on the balance sheet. Only balance sheet accounts are considered permanent accounts because their balances are carried forward from one accounting period to the next.

Revenue and Expense Accounts Are Permanent Accounts Because They Always