Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Which of the following is a permanent account?

Rent Expense

Retained Earnings

Dividends

Service Revenue

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Verified step by step guidance

Understand the difference between permanent and temporary accounts. Permanent accounts (also known as real accounts) are not closed at the end of the accounting period and their balances are carried forward to the next period. Examples include assets, liabilities, and equity accounts. Temporary accounts (nominal accounts), such as revenues, expenses, and dividends, are closed at the end of the period.

Analyze each option provided in the question: Rent Expense, Retained Earnings, Dividends, and Service Revenue. Determine whether each is a permanent or temporary account based on its nature.

Rent Expense is a temporary account because it is an expense account, and all expense accounts are closed at the end of the accounting period.

Dividends is also a temporary account because it represents distributions to shareholders and is closed to Retained Earnings at the end of the period.

Retained Earnings is a permanent account because it is part of the equity section of the balance sheet and its balance is carried forward to the next accounting period. Service Revenue is a temporary account because it is a revenue account and is closed at the end of the period.