Which of the Following Statements Is Incorrect

question 70

Multiple Choice

Which of the following statements is incorrect?

• A) Permanent accounts are another name for nominal accounts.
• B) Temporary accounts carry a zero balance at the beginning of each accounting period.
• C) The Income Summary account is a temporary account.
• D) Real accounts remain open as long as the asset,liability,or equity items recorded in the accounts continue in existence.
• E) Permanent accounts are another name for real accounts.

---

Definitions:

Federal Government

The national government of a federal country, such as the United States, responsible for enacting and enforcing laws applicable across all states and territories.

Expenditures

Refers to the amount of money spent by either an individual, business, or government on goods and services.

Budget Deficit

The financial situation in which government expenditures exceed revenues.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly, disabled, and families with dependent children.