Asked by Ainsley Patton on Jul 13, 2024
Verified
The balance sheet accounts are referred to as real or permanent accounts.
Balance Sheet Accounts
Accounts that appear on the balance sheet, including assets, liabilities, and shareholders' equity accounts, reflecting the financial position of a business.
Real Accounts
Accounts related to assets, liabilities, and equity that are shown on the balance sheet, maintaining their balances over time and not closed at the end of the accounting year.
Permanent Accounts
Accounts on the balance sheet whose balances are carried over into the next accounting period.
- Distinguish between temporary and permanent accounts.
- Define and categorize real, personal, and nominal accounts.
Verified Answer
MC
Meghann CarterJul 13, 2024
Final Answer :
True
Explanation :
The balance sheet accounts are permanent accounts because they show the company's assets, liabilities, and equity at a specific point in time, and these balances carry over from year to year.
Learning Objectives
- Distinguish between temporary and permanent accounts.
- Define and categorize real, personal, and nominal accounts.