Which of the Following Categories of Accounts Are Temporary Accounts

question 108

Multiple Choice

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

• A)Assets, liabilities and withdrawals
• B)Revenues, expenses and withdrawals
• C)Assets, liabilities and capital
• D)Revenues, expenses and capital

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Definitions:

Compounded Semiannually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.

Compounded Annually

Interest calculation method where the interest earned is added to the principal at the end of each year, then the new total earns interest.

Check Register

A record of all transactions in a checking account, including checks written, deposits made, fees paid, ATM withdrawals, and so on.

Bank Statement

A statement that includes all transactions that have occurred for a period of approximately one month.