Solved

The Closing Process Requires Only Temporary Accounts to Be Adjusted

Question 36

Matching

The closing process requires only temporary accounts to be adjusted. Listed below are both temporary and permanent accounts.
State which accounts are permanent or temporary.

Premises:

Responses:

Note payable

temporary

Prepaid expense

permanent

Cash

Income summary

Owner's capital

Service revenue

Land

Owner's drawings

Accounts payable

Unearned revenue

Salaries expense

Depreciation expense

Rent expense

Accounts receivable

Interest payable

Premises:

Note payable

Prepaid expense

Cash

Income summary

Owner's capital

Service revenue

Land

Owner's drawings

Accounts payable

Unearned revenue

Salaries expense

Depreciation expense

Rent expense

Accounts receivable

Interest payable

Responses:

temporary

permanent

Correct Answer:

Premises:

Responses:

Note payable

Prepaid expense

Cash

Income summary

Owner's capital

Service revenue

Land

Owner's drawings

Accounts payable

Unearned revenue

Salaries expense

Depreciation expense

Rent expense

Accounts receivable

Interest payable