Identify Which of the Following Are Temporary Accounts of San

question 101

Short Answer

Identify which of the following are temporary accounts of San Migael Company.
(1) Owner's Capital
(2) Owner's Drawings
(3) Equipment
(4) Accumulated Depreciation
(5) Depreciation Expense

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Definitions:

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company through the purchase of its shares.

Shares of Par

Units of ownership in a corporation at the nominal or face value defined in the corporate charter, typically used in the context of par value shares.