MC30 What is the difference between a temporary account and a permanent account?
A. A temporary account is used to record transactions that occur over a long period of time, while a permanent account is used to record transactions that occur over a short period of time.
B. A temporary account is closed at the end of the accounting period, while a permanent account is not closed.
C. A temporary account records a company’s assets, liabilities, and equity, while a permanent account records its revenues and expenses.
D. A temporary account records its revenues and expenses, while a permanent account records a company’s assets, liabilities, and equity.
Answer:B
MC30 What is the difference between a temporary account and a permanent account?
A. A temporary account is used to record transactions that occur over a long period of time, while a permanent account is used to record transactions that occur over a short period of time. B. A temporary account is closed at the end of the accounting period, while a permanent account is not closed. C. A temporary account records a company’s assets, liabilities, and equity, while a permanent account records its revenues and expenses. D. A temporary account records its revenues and expenses, while a permanent account records a company’s assets, liabilities, and equity.