2010-09-15 Temporary Accounts Question

2010-09-15 Temporary Accounts Question - 2010-09-15...

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Unformatted text preview: 2010-09-15 Temporary Accounts Question.doc Is there any exception to Temporary Accounts include all the accounts on the Income Statement and Owners Drawing? Would a Dividend or a Gain on the Sale of..... Accounts also be close out? No, since all the accounts on the I/S must reflect activity of this period ONLY then to begin the next accounting period these accounts must be closed and begin next accounting period with zero balances. Remember a dividend is a distribution of income to owners so you would close dividends out only as an expense of the period and remember, Gain on sale is the SAME as Revenue, its just that Revenue is the result of "WHAT I DO" and Gains are the result of "WHAT I DON'T DO" e.g. I sell a truck used in my business to deliver iPears then if I sell it for more than book value, it is a GAIN, since I don't sell trucks, I sell iPears. If I sell a truck and my business is Ira's Truck Sales, then it is REVENUE, since selling trucks is WHAT I DO. Ira September 28, 2010 //home/vdimitrov/25148/d07bdc428fa7cd052c91404fefd67ad6fff81ee5.doc ...
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This note was uploaded on 09/19/2010 for the course ACCT 220 taught by Professor Ullmann during the Fall '10 term at University of Nebraska Kearney.

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