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

3. Accrual Accounting Concepts

Closing Entries

Financial Accounting

3. Accrual Accounting Concepts

Closing Entries

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Multiple Choice

Which of the following is NOT a temporary account?

Dividends

Service Revenue

Owner's Capital

Rent Expense

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Verified step by step guidance

Understand the concept of temporary and permanent accounts: Temporary accounts are used to record transactions for a specific accounting period and are closed at the end of the period. Examples include revenues, expenses, and dividends. Permanent accounts, on the other hand, carry their balances forward to the next accounting period and are not closed. Examples include assets, liabilities, and owner's equity accounts.

Analyze each account listed in the problem: Dividends, Service Revenue, Rent Expense, and Owner's Capital. Determine whether each account is temporary or permanent based on its nature and purpose.

Dividends: This account is temporary because it records distributions to owners during the accounting period and is closed to retained earnings at the end of the period.

Service Revenue: This account is temporary because it records income earned during the accounting period and is closed to the income summary at the end of the period.

Owner's Capital: This account is permanent because it represents the owner's equity in the business and is not closed at the end of the accounting period. Rent Expense: This account is temporary because it records costs incurred during the accounting period and is closed to the income summary at the end of the period.