Common Stock 34,000 upplies 4,000 dvertising Expense 2,000 accounts Payable 20,000 Fervice Revenue 30,000 Falaries Expense 3,000 Prepaid Rent 4,000 Dividends 3,000 Equipment 45,000
Common Stock 34,000 upplies 4,000 dvertising Expense 2,000 accounts Payable 20,000 Fervice Revenue 30,000 Falaries Expense 3,000 Prepaid Rent 4,000 Dividends 3,000 Equipment 45,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 18MCQ
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Question
The following table contains financial information for ABC before closing entries:
How many of the above accounts are permanent?
Multiple Choice
Transcribed Image Text:Cash
$23,000
Common Stock
34,000
Supplies
4,000
Advertising Expense
2,000
Accounts Payable
20,000
Service Revenue
30,000
Salaries Expense
3,000
Prepaid Rent
4,000
Dividends
3,000
Equipment 45,000
Expert Solution
Step 1
Solution:
Permanent accounts are those accounts which are not closed at year end. They remain open from one period to next period. These carry their balance in Balance sheet.
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