Asked by Darrious Gaines on May 12, 2024
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The balance sheet accounts are referred to as real or permanent accounts.
Real Accounts
Accounts that are not closed at the end of the accounting year and include all balance sheet accounts that show the real and permanent financial position of a business.
Permanent Accounts
Accounts that carry their ending balances over to the next fiscal year, including asset, liability, and equity accounts, foundational for understanding a company's financial health.
Balance Sheet
A financial statement that displays a company's financial position at a specific point in time, listing assets, liabilities, and equity.
- Discern between temporary and permanent accounts and their respective contributions to financial statement preparation.
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Learning Objectives
- Discern between temporary and permanent accounts and their respective contributions to financial statement preparation.
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