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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Which of these accounts is considered a “temporary” account?

(a) Cash

(b) Accounts Payable

(c) J. Jones, Capital

(d) J. Jones, Drawing

To determine

Identify the temporary account from the given types of accounts.

Explanation

Justification for the incorrect answer:

Option (a) is incorrect because cash (asset) account will not be closed at the end of the accounting year, rather their account balances are carried forward to the subsequent accounting year’s balance sheet.

Option (b) is incorrect because accounts payable (liability) account will not be closed at the end of the accounting year, rather their account balances are carried forward to the subsequent accounting year’s balance sheet

Option (c) is incorrect because J.J, capital (stockholders’ equity) account will not be closed at the end of the accounting year, rather their account balances are carried forward to the subsequent accounting year’s balance sheet...

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