When closing the books, accountants refer to certain accounts as "permanent or real" accounts-assets, liabilities, and equity. Why are they given this label?

Question

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These accounts are generally referred to as the permanent or real accounts. They are called permanent because they are carried from one period to another and are not closed out to zero at year end. Thus, for example, the ending balance of Cash of one period will be the beginning balance of Cash for the next period.

When Closing the Books, Accountants Refer to Certain Accounts as "Permanent