Which accounts accumulate information from one fiscal period to the next?

• A. Temporary accounts
• B. Post-closing trial balance
• C. Closing entries
• D. Permanent accounts

Answer: (D)

Permanent accounts carry their balances forward from one fiscal period to the next. These are the balance sheet accounts—assets, liabilities, and equity (like cash, accounts payable, and retained earnings). Because they reflect the ongoing financial position of the business, their ending balances at year-end become the starting balances for the next period.

Temporary accounts, such as revenues, expenses, and dividends, are closed at the end of a period to reset to zero for the new period. Closing entries transfer their net effect to permanent accounts (typically to retained earnings), which is why those temporary balances don’t carry over as separate balances.

The post-closing trial balance, which lists permanent accounts, confirms that only these ongoing balances remain after closing. In short, which accounts accumulate across periods? permanent accounts.