Question

For each account listed below, indicate whether it is a
nominal account or a permanent account. Select your
answer by clicking in the drop down box to the right of
each account.

Group of answer choices

retained earnings

      [ Choose ]            nominal account            permanent account      

prepaid insurance

      [ Choose ]            nominal account            permanent account      

cost of goods sold

      [ Choose ]            nominal account            permanent account      

unearned revenue

      [ Choose ]            nominal account            permanent account      

dividends

      [ Choose ]            nominal account            permanent account      

Answer 1

Solution

Retained earnings	Permanent account
Prepaid insurance	Permanent account
Cost of goods sold	Temporary account
Unearned revenue	Permanent account
Dividends	Temporary account

All balance sheet accounts are permanent account and all income statement accounts are temporary accounts.