Temporary Accounts Chapter 5

What type of accounts are temporary in accounting?

• Revenue, expense and drawing accounts

• Cash and bank accounts
• T accounts

• Asset and liability accounts

What does revenue recognition mean?

• Recognizing revenue on the date earned

• Calculating profit margins
• Managing cash flow
• Recording and reporting expenses in financial statements

What order are these accounts listed on a charter of accounts?

• Liabilities

• Assets

• Equity

• Expenses

• Revenue

How are temporary accounts in accounting different from permanent accounts?

• Temporary accounts are closed at the end of the accounting period, while permanent accounts are not.
• Temporary accounts are used for assets, while permanent accounts are used for liabilities.
• Temporary accounts are only used by small businesses, while permanent accounts are used by large corporations.
• Temporary accounts are used for long-term financial transactions, while permanent accounts are used for short-term transactions.

Revenue accounts are increased on the ​ ​ (a)   side.​

• credit
• debit

Expense accounts are increased on the ​ ​ (a)   ​ side.​

• debit
• credit

Withdrawal accounts are increased on the ​ ​ (a)   ​ side.​

• debit
• credit

What is a trial balance used for in accounting?

• Verifying the accounting equation

• Figuring profit or loss

• Figuring the amount of equity for the shareholder

• Closing temporary accounts

The totals of each side of a T-account is called the _________.

• Inequality

• Balance

• Disparity

• Footing

What is the side used to record increases to a T-account called?

• debit
• normal balance

• deposit

• credit