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The balance sheet accounts, assets, liabilities and owners capital accounts are known as permanent accounts. Income statement accounts such as revenue, expense, owners drawing accounts,

The balance sheet accounts, assets, liabilities and owners capital accounts are known as permanent accounts. Income statement accounts such as revenue, expense, owners drawing accounts, gain and loss accounts are typically temporary accounts. Permanent/real accounts carry forward their balance to the next accounting period. Temporary/nominal accounts are zeroed out and their balances are transferred to the owners capital account at the end of the accounting period.

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