What permanent accounts do not close at the end of the year?

Question

Assets, liabilities, and withdrawals

Assets, liabilities, and expenses

Assets, liabilities, and capital

Revenues, expenses, and capital

Answer 1

The correct choice is Assets, liabilities, and capital.

Permanent accounts, also known as real accounts, include assets, liabilities, and equity (or capital) accounts. These accounts carry their balances over from one accounting period to the next and do not close at the end of the year. In contrast, temporary accounts like revenues, expenses, and withdrawals are closed at the end of the accounting period.