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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is a permanent account?

Dividends

Service Revenue

Retained Earnings

Rent Expense

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Verified step by step guidance

Understand the difference between permanent and temporary accounts. Permanent accounts are those that carry their balances forward into the next accounting period, while temporary accounts are closed at the end of each accounting period and their balances are transferred to permanent accounts.

Identify the types of accounts listed in the problem: Dividends, Service Revenue, Retained Earnings, and Rent Expense. Categorize each as either permanent or temporary based on their nature.

Dividends are a temporary account because they are closed to Retained Earnings at the end of the accounting period.

Service Revenue is a temporary account because it is part of the income statement and its balance is closed to Retained Earnings at the end of the accounting period.

Retained Earnings is a permanent account because it is part of the equity section of the balance sheet and its balance carries forward into the next accounting period. Rent Expense is a temporary account because it is part of the income statement and closed at the end of the accounting period.