Prince Ltd's year-end trial balance includes the following accounts.
I. Cash
II. Sales revenue
III. Accounts receivable
IV. Owner's capital
V. Interest expense
VI. Interest payable
VII. Prepayments
Which of these are temporary accounts?
A) II, V and VII only
B) II, and V only
C) III and VI only
D) III, VI, and VII only

Question

Quizplus · Accepted Answer

Temporary accounts are those that are closed at the end of the accounting period to prepare the company for the next period. These include revenue, expense, and withdrawal accounts. In this case, Sales revenue (II) and Interest expense (V) are temporary accounts.

Prince Ltd's Year-End Trial Balance Includes the Following Accounts