Question
Asked Sep 19, 2019
6 views

Are all of the accounts on a balance sheet considered permanent including dividends? Dividends are considered an account in this question. Thank you.

check_circle

Expert Answer

Step 1

Account: A record which documents or records the changes in assets, liabilities, or equity for a particular period is referred to as an account.

Step 2

Permanent or Real accounts: The accounts which are not closed at the end of fiscal period, but the balances are retained and carried forward to next fiscal period are referred to as real accounts or permanent accounts. All assets, liabilities, stockholders’ equity, and capital accounts are real accounts. Accounts Receivable (asset), Cash (asset), Inventory (asset), Accounts Payable (liability), Wages Payable (liability), Notes Payable (liability), Retained Earnings (stockholders’ equity) and Capital (stockholders’ equity) accounts are few examples ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The following information shows the expected client invoice work-in-process levels for the staff gro...

A: In variable costing, the fixed expenses are treated as period cost and they are not allocated to the...

question_answer

Q: I need help on this.  It's lengthy and I don't know where to start.   The sales department of Donova...

A: g) Prepare a schedule of cash collected from customers for the quarter ended March 31, 20X1: 

question_answer

Q: 11.4Calculate financial leverage measures The following information was available for the year ended...

A: Calculate the debt ratio.

question_answer

Q: the retained earnings on a balane sheet are $80,000. Without seeing the rest of hte balance sheet, c...

A: Retained earnings implies that portion of earnings which have been retained by the company and not d...

question_answer

Q: Crane Company owned 22100 shares of Wildhorse Co. purchased in 2017 for $607750. On December 15, 202...

A: There might be a difference in the property declared as dividend on the date of acquisition and the ...

question_answer

Q: How can I compute the acquasition of plant assets?

A: The acquisition cost incurred on a plant asset is the cost expended to acquire and place the asset i...

question_answer

Q: Are the answers correct?

A: Variances are computed by subtracting the budgeted costs from actual costs. When actual rates/quanti...

question_answer

Q: I do not understand how to do case 3 and how to find the conversion cost to find the missing entries...

A: Working Note:Case 3 – Direct Labor and Manufacturing overheadManufacturing overhead is 150% of Direc...

question_answer

Q: Role of Accounting

A: Accounting: Accounting is a process of collecting and organizing financial transactions, analyzing, ...