Permanent accounts Include all of the following except Multiple Cholce Accounts Recelvable. Accumulated Depreclation-Equipment. Prepald Insurance. Depreclation Expense-Equipment. Unearned Revenue.
Permanent accounts are those accounts which are not closed at the end of the period and their balances are transferred to the next accounting period. Assets accounts, liabilities accounts, capital accounts are generally considered as permanent accounts as their balances are carried forward from one period to another. In the given question, balances of accounts receivable, accumulated depreciation-equipment, prepaid insurance and unearned revenue are transferred to the next period, thus, they are permanent accounts. Only the balance of depreciation expense-equipment is closed by transferring it to income summary. Thus, the correct option is Option 4, Depreciation Expense-Equipment.