Which Is NOT an Example of a Temporary Account

question 84

Multiple Choice

Which is NOT an example of a temporary account?

• A)Wages expense
• B)Service revenue
• C)Accumulated depreciation
• D)Electricity and gas expense

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Definitions:

Book Depreciation

The method of allocating the cost of a physical or tangible asset over its useful life for accounting and tax purposes.

Earnings and Profits

A measure used in corporate tax to assess the ability of a corporation to make distributions to its shareholders that are not considered a return of capital.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss on a sale or disposition.

Capital Gain

The profit from the sale of property or an investment, calculated as the difference between the selling price and the purchase price.