An Account That Is Not Closed at the End of the Period

question 137

Multiple Choice

An account that is not closed at the end of the period is called a(n) :

• A)expense account.
• B)temporary account.
• C)permanent account.
• D)revenue entry.

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Definitions:

Note Receivable

A written promise to pay a specified amount of money, usually with interest, at a future date; it is recorded as an asset on the balance sheet.

Due Date

The specific date by which a payment must be made or a task must be completed.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity at a specified date or on demand.

Face Amount

An amount at which bonds sell if the market rate equals the contract rate.