Which of the following is a permanent account?
A)Dividends
B)Advertising expense
C)Building
D)Selling expense
E)Insurance expense

Question

Quizplus · Accepted Answer

Permanent accounts are those accounts that are not closed at the end of the accounting period and carry forward their balances to the next period. Building is a fixed asset account and is a permanent account. The rest of the options are all temporary accounts that are closed at the end of the accounting period. Dividends are a distribution of profits and are closed to retained earnings, while the rest of the options are all expense accounts that are closed to income summary or retained earnings at the end of the period.

Which of the Following Is a Permanent Account