Accounts in Which the Balances Are Carried Over from One

question 22

Multiple Choice

Accounts in which the balances are carried over from one accounting period to the next are called:

• A) real accounts.
• B) nominal accounts.
• C) temporary accounts.
• D) zero accounts.

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Definitions:

Pretax Financial Income

Income calculated before taxes are applied, representing a company's earnings based solely on its operations and other financial activities.

Income Taxes Payable

The amount of income taxes that a company has accrued but has not yet paid to the tax authority.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Percentage Depletion

A tax deduction method for accounting natural resource depletion, calculated as a percentage of gross income from the resource.