Accumulated Depreciation is a permanent account. The dividends account is a temporary account The accumulated depreciation account is closed to the income summary account. Office Equipment is an example of a current asset account. The amount of the net income for a period appears on both the income statement and the balance sheet for that period. Generally accepted accounting principles require accrual -basis accounting Unearned revenue is a liability The financial statements are prepared from the unadjusted trial balance After analyzing transactions, the next step would be to post the transactions in the ledger Prepaid Insurance is an example of a current asset