Question

Which of the following are temporary accounts? (Select all that apply.)

a)salary expense
b)revenue
c)retained earnings
d)accounts payable

Answer 1

Temporary accounts in accounting are closed at the end of each accounting period, while permanent accounts are not.

Step-by-step explanation:

The temporary accounts are accounts that are closed at the end of each accounting period and their balances are transferred to the permanent accounts. In this case, revenue and salary expense are temporary accounts as they represent income and expenses for a specific period. Accounts payable, on the other hand, is a permanent account as it represents debts owed to suppliers or creditors, which are not closed out at the end of the accounting period.