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

Question

Quizplus · Accepted Answer

Permanent accounts, such as assets, liabilities, and equity, represent activity over the entire life of the company, while temporary accounts, such as revenue, expenses, and dividends, represent activity for a specific period and are closed at the end of each reporting period. Cash can be either a permanent or temporary account depending on its use. The statement in option D is incorrect as temporary accounts only represent activity for the current reporting period.

Which of the Following Is True Concerning Temporary and Permanent