Asked by Kevin Rodrigues on Jun 26, 2024
Verified
Temporary accounts include all of the following except:
A) Consulting revenue.
B) Dividends.
C) Rent expense.
D) Prepaid rent.
E) Income Summary.
Temporary Accounts
Accounts that track revenues and expenses within a specific accounting period and are reset to zero at the period’s end.
Prepaid Rent
A type of asset account on the balance sheet that represents rent payments made in advance of the rental period.
- Identify the differences and functions of permanent versus temporary accounts within the accounting framework.
Verified Answer
JJ
Julenane JulesJun 30, 2024
Final Answer :
D
Explanation :
Prepaid rent is an asset account and not a temporary account. Temporary accounts are used to track revenues, expenses, gains, and losses for a specific accounting period and are closed at the end of that period. Consulting revenue, dividends, rent expense, and Income Summary are all temporary accounts.
Learning Objectives
- Identify the differences and functions of permanent versus temporary accounts within the accounting framework.
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