Question

The ending account balances of permanent accounts for one fiscal period are (A) the same as the prior period's ending balance (B) equal to the capital account balance (C) all equal to zero (D) the beginning account balances for the next fiscal period. (p. 214)

Answer 1

Answer:

D. the beginning account balances for the next fiscal period.

Explanation:

Permanent accounts are accounts used to accumulate information from one fiscal period to the next.

The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.

Also, when expenses are reported in the same fiscal period that they are used to produce revenue it is known as the concept of matching expenses with revenue.