Asked by Khadija Arain on May 18, 2024
Verified
Normal Balance
The side of the accounting equation (debit or credit) where increases in the account are recorded.
Financial Statement
A written report which quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.
Permanent/Temporary
Refers to the classification of accounts where permanent accounts are balance sheet items that carry over into the next fiscal period, and temporary accounts are income statement items that are closed to equity at the end of the fiscal period.
- Acquire knowledge on how accounts are classified and their typical balances.
- Ascertain the financial reports that include distinct accounts.
- Understand the distinctions between perpetual and temporary financial accounts.
Verified Answer
DE