Question

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Answer 1

Temporary Accounts - Accounts that are reported on the income statement are called temporary accounts. These type of accounts would be closed after closing entries are being passed.

Permanent Accounts - Accounts that are reported on the balance sheet are called permanent accounts. After closing entries are being passed, the type of accounts that will be remained are permanent accounts.

Account	Type of Account	Permanent/Temporary	Closed
Supplies	Asset	Permanent	No
Depreciation Expense	Expense	Temporary	Yes
Sales Revenue	Revenue	Temporary	Yes
Buildings	Asset	Permanent	No