Adjusting journal entries, prepare adjusted trial balance, prepare financial statements, post-closing entries, prepare financial statements, prepare adjusted trial balance. Which of the following statements is correct? Balance sheet accounts are permanent accounts and do not retain their balances from one period to the next. Balance sheet accounts are temporary accounts and do retain their balances from one period to the next. Income statement accounts are permanent accounts and do retain their balances from one period to the next. Income statement accounts are temporary accounts and do not retain their balances from one period to the next. A calendar-year reporting company preparing its annual financial statements should use the phrase "At December 31, 2016" in the heading of which of the following? On all of the required financial statements. On only the income statement. On the income statement and balance sheet, but not the statement of cash flows. On the balance sheet, only. Which one of the following accounts would not be closed at the end of the accounting year? Utilities expense. Sales revenue. Prepaid rent expense. Wages expense