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

Question

Quizplus · Accepted Answer

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.

Which of the Following Account Groups Are Temporary Accounts