Which of the following statements is true?
The balance sheet reports financial activities only for the current accounting period.
The income statement reports the financial position of a company at a point in time.
Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts.

Respuesta :

Answer:

Following Statement is True:

Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts.

Explanation:

Income statement deals with the accounts which closes every year and start from zero for a new year, so these accounts are temporary accounts. On the other side Balance sheet deals with the accounts which carry their balances year by year and does not close, so these account are permanent until business does not seem to run in foreseeable future.