Which of the Following Accounts Is Considered a "Temporary" Account

question 98

Multiple Choice

Which of the following accounts is considered a "temporary" account?

• A)Inventory
• B)Common Stock
• C)Rent Expense
• D)Accounts Payable

---

Definitions:

Allowance Method

An accounting technique used to estimate bad debts (uncollectible accounts receivable) and represent them in financial statements.

Industry Average

A benchmark or standard calculated by taking the average of a specific metric across multiple companies within the same industry, useful for comparative analysis.

Adjusting Entry

An accounting record made to update the balances of accounts at the end of an accounting period before the preparation of financial statements.

Sales

Transactions involving the transfer of goods or services from a seller to a buyer in exchange for money or other considerations.