The Accounts Receivable Account Is a Permanent Account

question 123

True/False

The Accounts Receivable account is a permanent account.

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Definitions:

Direct Method

A cost allocation method that assigns service department costs directly to production departments without intermediate steps.

Income Statement

A financial statement that shows a company's financial performance over a specific period, detailing revenues, expenses, and net income.

Income Taxes Payable

A current liability account found on the balance sheet that represents the amount of income taxes owed to governmental authorities but not yet paid.

Income Tax Expense

The cost of income taxes a company incurs, calculated based on the taxable income and tax rates applicable, reflecting the company's obligation to government revenue services.