Which of the following are all permanent accounts?
A) Cash, Rent Expense, owner's drawing
B) Accumulated Depreciation, Notes Payable, owner's drawing
C) Cash, Prepaid Insurance, Notes Payable
D) Owner's capital, owner's drawing, Rent Expense

Question

Quizplus · Accepted Answer

Permanent accounts are those that carry their balances over into the next accounting period. Cash, Prepaid Insurance, and Notes Payable are all examples of permanent accounts because their balances are not closed out at the end of the accounting period but are carried forward. Rent Expense and owner's drawing are examples of temporary accounts, which are closed at the end of the accounting period.

Which of the Following Are All Permanent Accounts