Asked by RAM SAI DINESH REDDY on May 06, 2024
Verified
Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.
Stockholders' Equity
The remaining interest in a company's assets after all liabilities are subtracted, indicating ownership.
Real Accounts
Accounts that represent assets, liabilities, and equity, remaining open to accumulate financial information over several periods.
Liabilities
Financial obligations or debts that an entity owes to others, which are expected to be settled over time through the transfer of economic benefits.
- Differentiate between temporary and permanent accounts.
Verified Answer
NS
Nancy SmithMay 10, 2024
Final Answer :
True
Explanation :
Real accounts are permanent accounts that carry over from one accounting period to another without being closed or reset. Assets, liabilities, and stockholders' equity accounts are examples of real accounts.
Learning Objectives
- Differentiate between temporary and permanent accounts.