Permanent Accounts Would Not Include

question 7

Multiple Choice

Permanent accounts would not include:

• A) Interest expense.
• B) Salaries and wages payable.
• C) Prepaid rent.
• D) Deferred revenues.

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Definitions:

Capital Budgeting

The process used by companies to evaluate and prioritize major investments and expenditures.

Capital Structure

The mix of various forms of external funds and equity that a company uses to finance its activities.

Working Capital

The difference between a company's current assets and current liabilities, representing its short-term liquidity and operational efficiency.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing operations, and communicating with the board of directors.