At the end of a fiscal period, the balances of permanent accounts are summarized and transferred to the owner's capital account.

Question

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Permanent accounts (also known as real accounts) include asset, liability, and equity accounts, and their balances are carried over to the next fiscal period, not transferred to the owner's capital account. Only temporary accounts (revenues, expenses, dividends/drawings) are closed to the owner's capital account to reflect the period's net income or loss and distributions.

At the End of a Fiscal Period, the Balances of Permanent