Which of the following is NOT a temporary account?
Question
Which of the following is NOT a temporary account?
Solution
Step 1: Define the Problem
Identify which account among the options provided is not considered a temporary account.
Step 2: Break Down the Problem
- Understand what temporary accounts are.
- Identify the characteristics of temporary accounts.
- Compare the given options to these characteristics.
Step 3: Apply Relevant Concepts
- Temporary Accounts: These are accounts that are closed at the end of each accounting period. They include revenue, expense, and dividend accounts.
- Permanent Accounts: These accounts are not closed at the end of the accounting period and include assets, liabilities, and equity accounts.
Step 4: Analysis, Verify and Summarize
- Revenue Accounts: Temporary
- Expense Accounts: Temporary
- Dividend Accounts: Temporary
- Asset, Liability, and Equity Accounts: Permanent
Final Answer
The account that is NOT a temporary account is a permanent account. Examples include asset, liability, and equity accounts.
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