Chapter 4, Problem 4.9SE

To determine

Temporary account:

Temporary accounts are those final balances of accounts which are transfer to the income summary accounts (all revenues account, all expenses account and dividend). These accounts are transferred to Income summary account at the end of the accounting period to close the accounts every year.

Permanent account:

Permanent accounts are those accounts which are transferred to the balance sheet (all assets and liability account), and these accounts are permanent and carried forward to the next financial year.

To identify: Whether the account is a temporary accounts (T) or a permanent account (P).