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
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- Fall '10
- Ullmann
- Accounting, Income Statement, Revenue, Sales, accounting period, temporary accounts, Truck Sales
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