Which Account Below Is a Permanent Account

question 136

Multiple Choice

Which account below is a permanent account?

• A)Service Revenue
• B)Depreciation Expense
• C)Dividends
• D)Deferred Revenue

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Definitions:

Net Income

The income a company retains following the subtraction of all expenses and taxes from the gross revenue.

Sales

The total amount of goods or services sold by a company, typically reported within a specific period.

Return On Equity

An indicator of how well management is leveraging company assets to produce profits, found by dividing the net income by the equity of the shareholders.

Return On Assets

A profitability ratio that measures how efficiently a company can manage its assets to produce net income.