Assets, liabilities, and equity accounts are considered
A) temporary accounts.
B) closing accounts.
C) permanent accounts.
D) contra accounts.

Question

Quizplus · Accepted Answer

Assets, liabilities, and equity accounts are permanent accounts because they reflect the ongoing financial position of a business and are not closed at the end of each accounting period. Temporary accounts, on the other hand, are used to track transactions for a specific accounting period and are closed at the end of that period. Closing accounts refer to temporary accounts that are closed at the end of an accounting period to transfer their balances to permanent accounts. Contra accounts are accounts that have an opposite balance to their related account, such as accumulated depreciation which has a credit balance and is a contra account to the asset account it is related to.

Assets, Liabilities, and Equity Accounts Are Considered