All Of The Following Are Balance Sheet Accounts Except - Solved With Explanation

All Of The Following Are Balance Sheet Accounts Except:

The correct answer is (a) "Revenue Accounts", as Revenue Accounts (also Expense Accounts) are Income Statement Accounts and closed to Income Summary Account and these are zero-out at the end of the current accounting period.

These are shown in the income statement to calculate net income or net loss for the period. Net income is the difference between total revenues minus total expenses for the accounting period. If there is a net loss, then the total revenues is less than the total expenses for the period.

Assets Accounts, Liability Accounts and Owners’ Equity Accounts are Permanent Accounts or Balance Sheet Accounts as these are not closed or zeroed-out at the end of the accounting period and recorded on balance sheet at a point in time. Only, at time of liquidation of the business, these accounts are closed to pay out liabilities and to pay back return to shareholders and owners of the business.