Question

Which of the following accounts is not a permanent account?

A. Cash

B. Accounts Payable

C. Salaries Expense

D. Thomas Bernard, Capital

Answer 1

The correct answer is option C. The correct answer to the question about the account that is not a permanent account is option C, Salaries Expense. Permanent accounts include assets, liabilities, and equity that carry balances into the next period, whereas Salaries Expense is a temporary account that is closed at the end of the accounting period.

Step-by-step explanation:

The question presents a list of accounts and asks which one is not a permanent account. In accounting, permanent accounts are those that carry their balances over into the next fiscal period. These include balance sheet accounts such as assets, liabilities, and equity. The accounts listed as options A (Cash), B (Accounts Payable), and D (Thomas Bernard, Capital) are all examples of permanent accounts as they reflect the company's financial position and carry their balances forward.

On the other hand, Salaries Expense, option C, is considered a temporary account. Temporary accounts are used to collect information for a single accounting period. At the end of the period, temporary accounts are closed, and their balances are transferred to a permanent equity account, often Retained Earnings. This process helps in the preparation of the income statement, which shows the company's financial performance for the period. Thus, Salaries Expense is closed each period and does not carry its balance forward, making it the correct answer to the question. It is typical for all income statement accounts like revenues and expenses to be temporary accounts.

To summarily clarify, the correct option in the final answer to the question regarding which account is not a permanent account is C. Salaries Expense. This account is closed at the end of an accounting period, with its balance being zeroed out and its earnings included in the calculation of the net income or loss for the period.

Answer 2

Salaries Expense is not a permanent account because it is a temporary account that is closed out at the end of each accounting period.

Step-by-step explanation:

The question asks which of the listed accounts is not a permanent account. Permanent accounts are those that carry over their balances from one accounting period to the next. They are found on the balance sheet and include asset accounts, liability accounts, and equity accounts. The accounts listed are Cash (an asset), Accounts Payable (a liability), Salaries Expense (an expense), and Thomas Bernard, Capital (an equity account). Salaries Expense is the correct answer because it is a temporary account, not a permanent one. Temporary accounts are used to collect information for a single accounting period and are closed out (zeroed out) at the end of the period. The balances from temporary accounts are transferred to a permanent equity account, typically Retained Earnings, at the end of each period.