Asked by Abdullah Ghzzai Ghazi Albeladi on May 20, 2024
Verified
Which of the following account groups are temporary accounts?
A) Cash, Dividends, Wages Payable
B) Prepaid Insurance, Equipment, Fees Earned
C) Common Stock, Dividends, Retained Earnings
D) Rent Revenue, Fees Earned, Miscellaneous Expense
Temporary Accounts
Accounts that track revenues, expenses, and withdrawals for a specific accounting period and are closed at period end.
Miscellaneous Expense
Minor or incidental expenses that do not fit into standard categories and are not material to the business's overall financial results.
- Discern between categories of current assets, fixed assets, short-term obligations, and long-lasting liabilities in the balance statement.
Verified Answer
HM
Haley MorrisonMay 24, 2024
Final Answer :
D
Explanation :
Temporary accounts are those that are closed at the end of each accounting period to prepare the company for the next period. These include revenue, expense, and dividend accounts. Option D lists accounts (Rent Revenue, Fees Earned, Miscellaneous Expense) that are indeed temporary, as they relate to revenues and expenses within a specific period.
Learning Objectives
- Discern between categories of current assets, fixed assets, short-term obligations, and long-lasting liabilities in the balance statement.