Asked by Derin Jabour on Jun 16, 2024
Verified
Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts.
Permanent Accounts
Accounts that carry their ending balances over into the next accounting period and are not closed out, such as assets, liabilities, and equity accounts.
Balance Sheet
A document depicting a corporation’s financial standing at a particular instant, outlining its assets, debts, and owner's equity.
- Distinguish between temporary and permanent accounts and their roles in financial reporting.
Verified Answer
DM
Delyisa McallisterJun 16, 2024
Final Answer :
True
Explanation :
Permanent accounts, also known as real accounts, are reported on the balance sheet and carry forward from year to year, such as assets, liabilities, and equity accounts.
Learning Objectives
- Distinguish between temporary and permanent accounts and their roles in financial reporting.