Section 1 - Instruction
You've learned about the entire accounting cycle, from recording transactions to closing the books. A key final step is separating temporary accounts (which reset) from permanent accounts (which carry forward). Let's practice this distinction.
Engagement Message
In your own words, why do we reset revenue and expense accounts to zero?
Section 2 - Practice
Type
Sort Into Boxes
Practice Question
Let's practice classifying accounts. Sort these into Temporary or Permanent accounts.
Labels
- First Box Label: Temporary
- Second Box Label: Permanent
First Box Items
- Rent Expense
- Service Revenue
- Dividends
Second Box Items
- Cash
- Accounts Payable
- Retained Earnings
Section 3 - Practice
Type
Swipe Left or Right
Practice Question
Let's classify these assets. Swipe to identify them as Current (used within a year) or Non-Current (long-term).
Labels
- Left Label: Current Asset
- Right Label: Non-Current Asset
Left Label Items
- Cash in a checking account
- Inventory of t-shirts to be sold
- Accounts Receivable due in 30 days
Right Label Items
- A factory building
- A company-owned car
- A patent lasting 10 years
Section 4 - Practice
Type
Multiple Choice
Practice Question
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