Which of the Following Is Considered a Permanent Account

question 15

Multiple Choice

Which of the following is considered a permanent account?

• A)Income Statement accounts
• B)Balance Sheet accounts
• C)Both income statement accounts and balance sheet accounts
• D)None of these

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Definitions:

Liability Account

An accounting record that reflects the amounts a company owes to others, such as loans payable, accounts payable, bonds payable, etc.

Revenue in Advance

Income received by a business for services or goods that will be provided in the future; also known as unearned revenue.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Prepaid Insurance

Prepaid insurance is the portion of an insurance premium that has been paid in advance and is not yet expired at the time of the balance sheet date.