Asked by Jason Vowels on May 12, 2024
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Normal Balance
The side (debit or credit) on which an account increases, determined by the account type in the accounting equation.
Financial Statement
A formal record of the financial activities and position of a business, individual, or other entity, typically including a balance sheet and income statement.
Permanent/Temporary
Denotes the duration of financial accounts or business strategies: "permanent" indicates long-term endurance, while "temporary" suggests a short-term or temporary existence.
- Discern between continuous and momentary account types.
- Gain an understanding of how accounts are organized and their common balances.
- Discover which financial statements feature different accounts.
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YC