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 NOT a temporary account in financial accounting?

Expenses

Owner's Capital

Dividends

Revenue

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Verified step by step guidance

Understand the concept of temporary accounts: Temporary accounts are accounts that are closed at the end of an accounting period. These include revenue, expenses, and dividends, as their balances are transferred to permanent accounts (e.g., Retained Earnings or Owner's Capital).

Understand the concept of permanent accounts: Permanent accounts are not closed at the end of an accounting period. They carry their balances forward to the next period. Examples include assets, liabilities, and equity accounts such as Owner's Capital.

Analyze the options provided: Identify which accounts are temporary and which are permanent. Revenue, Expenses, and Dividends are temporary accounts because their balances are reset to zero at the end of the period. Owner's Capital, however, is a permanent account because it reflects the owner's equity and is not closed.

Determine the correct answer: Since the question asks for the account that is NOT a temporary account, the correct answer is 'Owner's Capital,' as it is a permanent account.

Conclude the reasoning: Temporary accounts (Revenue, Expenses, Dividends) are closed to Retained Earnings or Owner's Capital, while permanent accounts like Owner's Capital remain open and carry their balances forward.