Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
What is the purpose of this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started