Which account is considered a permanent account?

Permanent accounts are those that carry their balances into the next accounting period. They relate to the ongoing financial position of a company rather than fiscal periods. Accounts that appear on the balance sheet, such as assets, liabilities, and equity, are permanent accounts. These accounts do not close at the end of an accounting period but are updated with transactions that occur during that period.

In contrast, temporary accounts, such as revenue and expense accounts, accumulate balances over a period and are closed at the end of each accounting cycle, resetting their balances to zero in preparation for the next period. Therefore, the choice indicating that accounts appearing on the balance sheet is the correct answer, as they align with the definition and characteristics of permanent accounts.