Which of the following statements is incorrect?
A) Permanent accounts are another name for temporary accounts.
B) Temporary accounts carry a zero balance at the beginning of each accounting period.
C) The Income Summary account is a temporary account.
D) Permanent accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence.
E) Permanent accounts include assets.

Question

Quizplus · Accepted Answer

Permanent accounts are not another name for temporary accounts. Permanent accounts are accounts that have a continuous balance and are not closed at the end of the accounting period, whereas temporary accounts are closed at the end of the accounting period.

Which of the Following Statements Is Incorrect