Question
Asked Dec 18, 2019
2 views

What are the permanent accounts? Are permanent accounts closed in the closing process?

check_circle

Expert Answer

Step 1

Permanent accounts:

The accounts which carry over the time like assets, liability, and equity accounts are called permanent accounts.

Step 2

Explanation

The account which continues beyond the accounting period of a business is called a permanent account. Permanent accounts are not closed at the end of an accounting period and shown in the balance sheet ...

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: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As i...

A: The correct answer is option (3).

question_answer

Q: What are the two rules to remember about adjusting entries?

A: Adjusting entries:An adjusting entry is prepared when the trial balance is not up-to-date, and compl...

question_answer

Q: Beeler Furniture Company deposits all cash receipts cach Wednesday and Friday in a night depository ...

A: 1. Prepare the bank reconciliation statement of Company BF as at July 30, 20Y2.

question_answer

Q: Paragon Tech Company, a communications equipment manufacturer, recently fell victim to a fraud schem...

A:  

question_answer

Q: Professional ethics and end-of-year actions.  Linda Butler is the new division controller of the sna...

A: 8. Why might the snack-foods division president want to take these end-of-year actions?- The clear r...

question_answer

Q: What are the source documents? Provide examples of source documents that a business might use?

A: Source documents: Transactions are recorded in financial statements based on a document such documen...

question_answer

Q: Professional ethics and reporting division performance.  Hannah Gilpin is the controller of Blakemor...

A: First of all, we shall understand how the structure of Income statement is.  Please see attached a s...

question_answer

Q: Why might managers seeking a monthly bonus based on attaining a target operating income prefer the s...

A: Production method: Production method is a method of accounting for byproducts. As per production met...

question_answer

Q: How is knowing the degree of operating leverage helpful to managers?

A: Degree of Operating Leverage:  Degree of operating leverage is an efficiency ratio which evaluates t...