Sales revenue is a permanent account. True or False?

Understand the Problem

The question is asking whether sales revenue is classified as a permanent account, requiring knowledge of accounting principles.

More Information

Sales revenue is considered a temporary account in accounting because it is closed at the end of each accounting period to prepare the accounts for the next period.

Tips

A common mistake is confusing temporary revenue accounts with permanent accounts like assets, liabilities, and equity accounts which are not closed.

Sources

• Current Attempt in Progress Sales revenue is a | Chegg.com - chegg.com
• Temporary vs Permanent Accounts | F&A Glossary - BlackLine - blackline.com