Asked by Hanna Jordan on May 09, 2024
Verified
Balance sheet accounts are considered to be
A) temporary owner's equity accounts.
B) permanent accounts.
C) capital accounts.
D) nominal accounts.
Balance Sheet Accounts
These are financial accounts that show the assets, liabilities, and owner's equity of a company at a specific point in time.
Permanent Accounts
These are ledger accounts that carry their ending balances into the next accounting period, typically including asset, liability, and equity accounts.
Temporary
In accounting, temporary refers to accounts that are closed at the end of an accounting period, such as revenues, expenses, and dividends.
- Identify the types of accounts that appear on a post-closing trial balance and understand the distinction between permanent and temporary accounts.
Verified Answer
DT
Deonshay ToomerMay 14, 2024
Final Answer :
B
Explanation :
Balance sheet accounts are considered to be permanent accounts because they carry over from one accounting period to another and are not closed out at the end of each period. This is unlike temporary owner's equity accounts or nominal accounts, which are closed out at the end of each period. Balance sheet accounts include assets, liabilities, and owner's equity, and they provide a snapshot of an organization's financial position at a specific point in time.
Learning Objectives
- Identify the types of accounts that appear on a post-closing trial balance and understand the distinction between permanent and temporary accounts.