Which of the Following Is Considered a Permanent Account

question 106

Multiple Choice

Which of the following is considered a permanent account?

• A) Allowance for Doubtful Accounts
• B) Sales Returns and Allowances
• C) Bad Debts Expense
• D) Sales

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Definitions:

Supplies Account

An account used to track the costs of small items or materials that are used in the operations of a business.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period, ensuring the financial statements reflect accurate and up-to-date information.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Depreciation Expense

Spreading the expense of a tangible asset over the period it's expected to be used.