Accounts that are used to describe assets, liabilities, and equity, that are not closed aslong as the company continues to own the assets, owe the liabilities, or have equity, and whose balances appear on the balance sheet are called:
A)Nominal accounts.
B)Contra accounts.
C)Accrued accounts.
D)Temporary accounts.
E)Permanent accounts.

Question

Quizplus · Accepted Answer

Permanent accounts are used to describe assets, liabilities, and equity that remain open as long as the company owns the assets, owes the liabilities, or has equity. The balances of permanent accounts appear on the balance sheet. Nominal accounts, contra accounts, accrued accounts, and temporary accounts are all types of accounts that are closed at the end of an accounting period.

Accounts That Are Used to Describe Assets, Liabilities, and Equity