Which of the Following Is True Concerning Temporary and Permanent

question 148

Multiple Choice

Which of the following is true concerning temporary and permanent accounts?

• A)Cash is a temporary account.
• B)Permanent accounts represent activity over the entire life of the company.
• C)Permanent accounts must be closed at the end of every reporting period.
• D)Temporary accounts represent activity over the previous three years.

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Definitions:

Liable

Legally responsible or accountable for actions or outcomes, often necessitating compensation for damages or loss caused.

Defect

A flaw or imperfection in a product or document that makes it inadequate or puts it out of compliance with standards or expectations.

Accident

An unplanned event that causes injury or damage.

Police Power

The capacity of states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.