Which of the following is true concerning temporary and permanent accounts?
A)Cash is a temporary account.
B)Permanent accounts represent activity over the entire life of the company.
C)Permanent accounts must be closed at the end of every reporting period.

Question

Quizplus · Accepted Answer

Temporary accounts represent activity over a specific period of time, while permanent accounts represent activity over the entire life of the company. Permanent accounts do not need to be closed at the end of every reporting period, unlike temporary accounts which need to be zeroed out and closed to start fresh for the next period. Cash is actually a permanent account because it represents the company's ongoing cash balance.

Which of the Following Is True Concerning Temporary and Permanent