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Temporary & Permanent Accounts: Definition & Differences

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Accounts whose balances are not carried over from one accounting period to another are called:

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1. Accounts whose balances are carried over from one accounting period to the next are called:

2. Which of the following is an example of a temporary account?

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About This Quiz & Worksheet

This quiz and attached worksheet will help gauge your understanding of differentiating temporary and permanent accounts. Topics you will need to know in order to pass the quiz include accounting periods and transferring balances.

Quiz & Worksheet Goals

These assessment tools will help you measure your knowledge of accounting, specifically:

  • Characteristics of temporary and permanent accounts
  • Examples of temporary and permanent accounts
  • Identify what it means to close an account

Skills practiced

This worksheet and quiz let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related business accounting lesson
  • Distinguishing differences - be able to identify the differences between temporary and permanent accounts
  • Interpreting information - verify that you can read information regarding transferring balances from temporary to permanent accounts and interpret it correctly
  • Information recall - access the knowledge you've gained regarding types of temporary and permanent accounts

Additional Learning

Read the associated lesson called Temporary & Permanent Accounts: Definition & Differences to learn more about differentiating temporary and permanent accounts. Reviewing this lesson should enable you to accomplish the following objectives:

  • Define temporary and nominal accounts
  • Understand revenue accounts, expense accounts, and the owner's drawing account
  • Define permanent and real accounts
  • Identify assets, liabilities, and owner's equity
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