Temporary Accounts
Revenue
Expense
Withdrawls
misc.
100
They are used to collect information for a single accounting period.
What is the purpose of a temporary account?
100
Credit
What is the normal balance of a revenue account?
100
Debit.
What is the normal balance of an expense account?
100
Debit.
What is the normal balance?
100
Permanent.
What is a capital account, temporary or permanent?
200
They start with zero balances.
What is the balance of a temporary account at the beginning of a new accounting period?
200
Debit
What is the decreasing side of a revenue account?
200
It will decrease it.
What does a expense account do to owners capital?
200
Makes it decrease.
What does a withdrawls account do to owners capital?
200
Its continuous.
Are permanent accounts continuous or do they get balanced out at the end of the period.
300
The amount is transferred to the owner's capital account.
What happens at the end of the accounting period?
300
They are set up to record business income.
What is a revenue account?
300
Credit.
What side decreases on an expense account?
300
Credit.
What is the decreasing side of an withdrawls account?
300
Cash in bank and advertising expense.
If a business buys advertising what is affected?
400
Withdrawls, revenue and expenses.
What are three temporary accounts?
400
A sale of goods or services.
What has to happen for a revenue account to increase?
400
It is the cost of doing business.
What is a expense account?
400
It allows the business to take money/assets out of the business.
What is a withdrawls account?
400
Assets and liabilities.
What are two other permanent accounts?
500
No.
Do all the temporary accounts effect owners capital in the same way?
500
Makes it increase.
What does a revenue account do to owners capital?
500
Utilities, Rent, Advertising.
What is a primary example of an expense?
500
yes.
Is withdrawls considered a temporary owners equity?
500
The balance rolls over to the next period.
What happens at the end of an accounting period for a permanent account?
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