Among the options provided, c) unearned revenue is not a temporary account.
Temporary accounts are accounts that are closed at the end of each accounting period, meaning their balances are reset to zero for the next period. These accounts are used to measure income and expenses over a specific period of time. Examples include:
- Depreciation Expense (a) – This is a temporary account that records the expense related to the use of fixed assets.
- Service Revenue (b) – This account reflects the income earned from providing services during the period and is also temporary.
- Interest Income (d) – Similar to service revenue, this account tracks income earned from interest and is temporary as well.
On the other hand, unearned revenue represents money received by a company for goods or services that are to be delivered or performed in the future. Since it reflects a liability that remains until the service is completed or the product is delivered, it is classified as a permanent account and is not closed at the end of the accounting period.