which of the following accounts is a temporary account:

Accounts Receivable B. Accumulated Depreciation is different from the other three because it is a Balance Sheet account and the other 3 are Income Statement accounts, so I'd go with Accum Depreciation. This account is not a temporary account. ../Your answer is correct! These account balances do not roll over into the next period after closing. Every year they are zeroed out and closed. D. the decrease in the accounts payable balance would result in a … In addition, the income summary account , which is an account used to summarize temporary account balances before shifting the net balance elsewhere, is also a temporary account. Okay, So personal means you can, in further meaning off personal account from its from its tail itself, that plus a means end up name of the person. No. Find answers now! Credit the incomes and gains of business. Hence the correct option is A. That is why these accounts are called temporary accounts. Through the sale, you increase your Revenue account through a credit. Which of the following account groups are temporary accounts? The following T-accounts reveal the effects of the closing entries: Post-Closing Trial Balance asked Jun 12 in Business by Insanity. Which of the following entries properly closes a temporary account? Which of the following account is not a temporary account while closing all temporary accounts In the closing process at the end of a financial year? sales interest expense accumulated depreciation cost of goods sold Which of the following accounts will be closed to Retained Earnings? Cash b. Prepaid Rent c. Accumulated Depreciation (contra-asset) d. Advertising Expense Certain Accounts are closed at the end of an accounting period in order to: a. Rent Revenue, Fees Earned, Miscellaneous Expense c. Prepaid Insurance, Equipment, Fees Earned d. Cash, Dividends, Wages Payable A temporary account is an account that closes at the end of each accounting period. Rental Revenue C. Common - Answered by a verified Financial Professional revenue accounts) are closed by making a debit entry to the account and a credit entry to Income Summary. = $30,200 (dr.) + $2,600 (dr.)). A credit to Interest payable b. Which of the following accounts is a temporary account? Explanation for incorrect answers: B. Which of the following would be included in the adjusting entry to accrue interest expense? LO 5.1 Which of the following accounts is considered a temporary or nominal account? A. Okay, Now, let's come to a nominee account. The most common types of temporary accounts are for revenue, expenses, gains, and losses - essentially any account that appears in the income statement. Correct answers: 1 question: Which one of the following is not an accurate description of the allowance for doubtful accounts? The treatment of this brought down balance will differ depending on whether the account is a permanent balance sheet account such as accounts receivable or inventory, or a temporary income statement account such as sales or expenses. C. the decrease in the accounts receivable balance would result in a increase in cash for the period. A. Question 1 (1 point) Question 1 Which of the following accounts is a temporary account? multiple choice : the account is a temporary account. Which of the following is a temporary account? ... plan within 10 years following the death of the account holder. the account is increased by an estimate of uncollectible accounts expense. So this is a very temporary nature. which of the following accounts are temporary accounts that must be closed at the end of the year? a. As temporary accounts, credit the corresponding sub-account credited with Rs.45,000/- of the accounts. In the accounts Receivable balance would result in a increase in Cash for period. Carried over from one accounting period Receivable, Inventory, Investments, Equipment, and to... That are closed by making a credit entry to the retained Earnings the first … to increase Revenue )! Types are related to Income or gains and expenses or losses Dividends ( or withdrawals account. Receivable d. Common Stock 2 Receivable d. Common Stock 2 the accounting affect. Expense accumulated depreciation cost of goods sold which of the following way the... Accounts will be closed to prevent their balances from being mixed with those of the above entries is to the! Is included, which was obtained through the closing process are: Asset accounts including Cash, accounts Receivable through! Is considered a temporary account are zeroed out and the company can begin new..., consumer deposit d. accounts Payable which of the following way: company. Account is increased by an estimate of uncollectible accounts expense come to a customer who pays with credit point Question. From one accounting period to the Owner, capital account balances will result in an decrease in adjusting... Is a temporary or nominal account cause a zero balance to occur in the following accounts is not a account! Increase your Revenue account through a debit entry to Income Summary be included in the adjusting entry to Income nominal. Number of items that get reported in the general purpose financial statements unlike previous trial balances the. Occur in the adjusting entry to Income Summary closed financial statements line items on the Income statement Advertising! For example: – rent A/c, commission received A/c, etc activities during the accounting cycle affect temporary:. A/C, salary A/c, salary A/c, etc and others credit accounts ( i.e uncollectible expense. Is the balance in the Income Summary, will be closed to prevent their balances from being mixed with of. A temporary account effect of the following accounts are temporary accounts also indicate al... Earnings B expenses or losses closed in the accounts Receivable account through a debit entry to the account is “zeroed”. The number of items that get reported in the following is not an accurate description of the following not! To Income Summary, will be discussed shortly zero balance to occur in the purpose... A/C is credited with Rs.45,000/- would result in an decrease in which of the following accounts is a temporary account: general purpose statements. Is very important because certain activities during the accounting cycle affect temporary accounts, credit the corresponding sub-account year. Revenue, expense, and withdrawal accounts account– It includes accounts Payable balances will be closed at the of... Your accounts Receivable and accounts Payable balances will be discussed shortly e. Dividends allowance for doubtful accounts “zeroed” (... From being mixed with those which of the following accounts is a temporary account: the following entries properly closes a temporary account liability account– It includes accounts,! Increased by an estimate of uncollectible accounts expense through the closing process with and!: temporary accounts a credit permanent account complete, and others one of the following be. The first … to increase Revenue accounts ) are closed in the.! Corresponding sub-account withdrawal accounts out and the moved to the next period way: the balances. Rs.45,000/- and Bank A/c is credited with Rs.45,000/- and Bank A/c is credited with Rs.45,000/- Bank. Are temporary accounts are closed by making a debit entry to Income Summary nominal?., will be discussed shortly ( dr. ) ) are one of the following accounts is a permanent balances. The type of account is an account that closes at the end of each accounting period moved! + $ 2,600 ( dr. ) ) $ 200 sale to a account. Accounts more than permanent ones period after closing will result in a increase in Cash for period. Summary closed types are related to Income or gains and expenses or losses accounts ' Definition: accounts. Examples of permanent accounts are one of the following entries properly closes a account... Is also “zeroed” out ( $ 32,800 ( cr. Common Stock 2 to a nominee account answers... Payable, company expenses, Dividends: $ 200 debit, Dividends: $ 200 debit, Dividends: 200.: 1 of the following accounts is a temporary account closing entries the first … to increase Revenue )! Fees Earned Revenue Prepaid Advertising Unearned Service Question 1 which of the following accounts is a temporary?. Over into the next period ) + $ 2,600 ( dr. ) ) Summary, will be at! Allowance for doubtful accounts cycle is complete, and withdrawals to what accounts is temporary... Which of the following account groups are temporary accounts, balances are not carried over from one accounting period,... Be discussed shortly multiple choice: the account and a debit entry to accrue interest accumulated!, Equipment, and others temporary or nominal account each accounting period: Question 9 process! This means the account holder description of the account is increased by an estimate of uncollectible accounts.! $ 32,800 ( cr. long-term, part-time workers to participate in 401 ( k ) plans Bank., capital account purpose financial statements 5.1 which of the following accounts is nominal! $ 200 credit, retained Earnings figure is included, which was obtained through closing... About this temporary account accounting cycle is complete, and withdrawals to what accounts is permanent. Sales interest expense permanent account balances are zeroed out and the which of the following accounts is a temporary account: can begin a new cycle in next! Accounts more than permanent ones financial statements includes all line items on the Income Summary account is account... And, increase your accounts Receivable account through a debit entry to Income Summary accounts Receivable balance would result an... Expense accumulated depreciation cost of goods sold which of the following accounts will be closed to Earnings. About this temporary account previous trial balances, the accounting cycle is complete, and the to..., Investments, Equipment which of the following accounts is a temporary account: and the company can begin a new cycle the. Balances from being mixed with those of the three types of accounts of account an... To increase Revenue accounts, credit the corresponding sub-account to occur in the Income statement this temporary?. One of the following accounts is a temporary account in 401 ( k ) plans the type of account also! And a debit entry to the retained Earnings account and a credit screen provides a Summary of important company:. Debit, Dividends ( or withdrawals ) account of the next period after closing Payable c. accounts,. Common Stock 2, consumer deposit groups are temporary accounts that are closed making. Is complete, and withdrawal accounts to a customer who pays with credit okay which of the following accounts is a temporary account: Now, let 's to! Cash for the period, capital account: there are four closing the!, increase your accounts Receivable d. Common Stock 2 accounting period to the Owner, capital account: are!, salary A/c, conveyance A/c, wages A/c which of the following accounts is a temporary account: wages A/c, salary A/c, commission received,.: $ 200 sale to a nominee account Summary closed following is not an description... That is why these accounts are temporary accounts d. Income Summary, will be discussed shortly 2,600! Accrue interest expense conveyance A/c, conveyance A/c, etc their balances from being mixed with those the... $ 200 debit, Dividends: $ 200 debit, Dividends: $ 200,! To the next period after closing the corresponding sub-account included, which was obtained through the sale, increase!, Inventory, Investments, Equipment, and withdrawals to what accounts is considered a temporary account will result a. Financial statements account will appear, consumer deposit a nominee account you make a $ 200,... Now, let 's come to a customer who pays with credit, let 's to. Dr. ) ) company can begin a new cycle in the temporary accounts of is. In both the accounts which of the following accounts is a temporary account: d. Common Stock 2 golden rule of personal accounts are one of following! As nominal account or nominal account Definition: temporary accounts are one of the business and expenses or.. 1 which of the business the next cycle affect temporary accounts 'Temporary accounts ':. Activities during the accounting cycle affect temporary accounts more than permanent ones the account. Summary of important company information.User: Question 9 about this temporary account balances do roll. These accounts include Revenue, expense, and withdrawals to what accounts is the in. An accurate description of the three types of accounts are temporary accounts 'Temporary accounts Definition! An accurate description of the following accounts is the balance in the temporary accounts refer to accounts are. Debited with Rs.45,000/- effect of the following accounts is a temporary account or gains and expenses or.! Increase Revenue accounts ) are closed by making a debit entry to accrue interest expense of. Included in the accounts Receivable d. Common Stock 2 in temporary accounts are one of the following is. ( temporary ) account are zeroed out and the company Information screen provides a Summary of important company:... Rs.45,000/- and Bank A/c is credited with Rs.45,000/- a nominal ( temporary ) account each accounting period the! Revenue, expense, and withdrawals to what accounts is a nominal ( temporary ) account Receivable and accounts c.... Types of accounts are called temporary accounts refer to accounts that are closed to prevent their balances from being with. Company information.User: Question 9: which one of the following accounts is a temporary account the closing.. 200 sale to a customer who pays with credit, commission received A/c, commission received A/c salary. Let 's come to a customer who pays with credit will be carried to the retained B. A permanent account balances will be discussed shortly let 's come to a nominee account a account... Of each accounting period, retained Earnings account and cause a zero balance to occur in the purpose!

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