Permanent accounts carry their balances into the next accounting period. Moreover, asset, liability and revenue accounts are not closed as long as a company continues in business.

Question

Quizplus · Accepted Answer

Permanent accounts carry their balances into the next accounting period, but this category includes asset, liability, and equity accounts, not revenue accounts. Revenue accounts are temporary accounts that are closed at the end of each accounting period.

Permanent Accounts Carry Their Balances into the Next Accounting Period