What are Permanent Accounts?
Permanent accounts are accounts that are not closed out at period-end.
How it Works
The double entry account system contains a mix of permanent and temporary accounts.
Temporary accounts are used to collect data for an accounting period.
After this, they are closed out.
This leaves them empty, ready for next period’s transactions.
Permanent accounts, on-the-other hand, are never closed out.
At any stage, they show what the business owns verses what it owes.
© R.J. Hickman 2020