Question

Which of the following statements is correct?

a. Balance sheet accounts are permanent accounts and do not retain their balances from one period to the next.
b. Balance sheet accounts are temporary accounts and do retain their balances from one period to the next.
c. Income statement accounts are permanent accounts and do retain their balances from one period to the next.
d. Income statement accounts are temporary accounts and do not retain their balances from one period to the next.

Answer 1

D) Income statement accounts are temporary accounts and do not retain their balances from one period to the next.