Is "Owner's Capital" a temporary or permanent account? Please explain what happens to this account during the closing process.

Q: For a sole trader, which accounts are generally involved in closing entries? Why are these accounts…

A: A sole trader, often called as a sole proprietorship, is a simple business structure in which one…

Q: Accumulated Depreciation is a permanent account. True False

A: Temporary accounts are those which are closed at the end of every period and not shown in the…

Q: What is the net effect of the foreclosing entries on the balance of the owner's capital account?

A: Owner’s capital account is the one that shows the net amount that the owner has invested in the…

Q: Explain the concept of impairment in accounting, and discuss the indicators and procedures used to…

A: In accounting, impairment refers to a reduction in the carrying value of a long-lived asset when its…

Q: Is depreciation a permanent account or temporary account? Explain?

A: Depreciation refers to the process of allocating the total cost of an asset (except land) to expense…

Q: What are closing entries, and how do you explain them

A: Some accounts in accounting are referred to be transitory accounts because they shut after each…

Q: What is the purpose of the post-closing trial balance?

A: A post-closing trial balance is prepared after the adjustments for adjusting entries and closing…

Q: Please tell us about permanent and temporary accounts.  Please let us know which financial statement…

A: Balance sheet: It is a statement which reports both assets and liabilities as on a particular date…

Q: Give typing answer with explanation and conclusion  Come into being when the trustor dies. They do…

A: A testamentary trust is a type of trust that is created through a person's will and only comes into…

Q: Closing entries transfer the balances of the permanent accounts to the temporary accounts.   Select…

A: The permanent accounts will usually appear in the post-closing trial balance. The temporary account…

Q: what accounts are permanent accounts on the balance sheet

A: Balance sheet(B/S): It is one among the financial statements. It consists of assets,  equity and…

Q: When recording closing entries, what are the processes to follow?

A: The final entry is as follows: Generally speaking, it may be characterized as a journal entry that a…

Q: How do you journalize and post an adjusting entry for depreciation and determining book value?

A: Depreciation is Decrease in the value of Assets due to Normal wear and Tear There are Many Method to…

Q: Describe how debits and credits affect temporary owners’ equity accounts.

A: Accounting follows the double-entry bookkeeping system. The basic rules of double-entry bookkeeping…

Q: The _____ is prepared after closing entries are posted to prove the equality of debits and credits

A: Closing entries are reported at the conclusion of the year to close the temporary accounts.

Q: In recording the transactions of an estate, when are liabilities recorded? Choose the correct. a.…

A: Journal entry is an art of recording, classifying and summarizing business transactions into…

Q: Why is a service expense a good account for recording a fictitious expense?

A: Fictitious Expense:  Fictitious expense has no tangible existence or any value, but it is created in…

Q: What types of accounts are listed on the post-closing trial balance?

A: Post-Closing Trial Balance: After passing all the journal entries and the closing entries of the…

Q: The purpose of documenting closing entries is twofold. Who or what are they?

A: Introduction: Closing entry:  It is a journal entry recorded during the accounting period to change…

Q: Explain why temporary accounts are closed each period.

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…