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

Question

Assets, liabilities, and capital

Assets, liabilities, and withdrawals

Revenues, expenses, and capital

Assets, liabilities, and expenses

Answer 1

Permanent accounts are accounts that do not close at the end of the accounting period. They are carried over to the next period. The correct answer includes:

Assets, liabilities, and capital.

These accounts remain open and maintain their balances from one period to the next, while temporary accounts (like revenues, expenses, and withdrawals) are closed at the end of the year to prepare for the new accounting period.