Permanent accounts would not include: Interest expense. Salaries and wages payable. Prepaid rent. Deferred revenues The purpose of closing entries is to transfer: Accounts receivable to retained earnings when an account is fully paid. Balances in temporary accounts to a permanent account Inventory to cost of goods sold when merchandise is sold. Assets and liabilities when operations are discontinued When the amount of revenue collected in advance decreases during an accounting period: Accrual-basis revenues exceed cash collections from customers. Accrual basis net income exceeds cash-basis net income. Accrual basis revenues are less than cash collections from customers Accrual-basis net income is less than cash-basis net income. When converting statement from a cash basis to an accrual basis, which an income following is incorrect? An adjustment for depreciation reduces net income. A decrease in salaries payable decreases net income. A reduction in prepaid expenses decreases net income. An increase in accrued payables decreases net income