Which of the following are permanent accounts? (check all that apply)1 pointRetained Earnings Unearned Revenue Revenue Cost of Goods Sold Common Stock
Question
Which of the following are permanent accounts? (check all that apply)1 pointRetained Earnings Unearned Revenue Revenue Cost of Goods Sold Common Stock
Solution
Permanent accounts, also known as real accounts, are the accounts that don't close at the end of the accounting year. The balances in these accounts are carried over to the next accounting year. They are typically the balance sheet accounts.
From the options you provided, the permanent accounts are:
- Retained Earnings
- Common Stock
Unearned Revenue, Revenue, and Cost of Goods Sold are temporary accounts, not permanent. They are closed at the end of each accounting period.
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