Balance Sheet Accounts Are Considered to Be

question 166

Multiple Choice

Balance sheet accounts are considered to be

• A) temporary stockholders' equity accounts.
• B) permanent accounts.
• C) equity accounts.
• D) nominal accounts.

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Definitions:

Net Income

A company's earnings that remain after subtracting all expenses and taxes from total revenue.

Expenditure

Money spent or cost incurred in an organization's efforts to generate revenue, representing the consumption of goods and services.

Discount Period

The time period between the date of sale and the due date, during which a payment may be made at a reduced rate.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as buildings, machinery, or equipment to boost its long-term revenue and profitability.