Accounting Concepts: Permanent and Temporary Accounts

Accounts used to accumulate information from one fiscal period to the next.

• post-closing trial balance

• closing entries

• permanent accounts

• temporary accounts

Accounts used to accumulate information until it is transferred to the owner’s capital account.

• temporary accounts

• accounting cycle

• permanent accounts

• post-closing trial balance

Journal entries used to prepare temporary accounts for a new fiscal period.

• permanent accounts

• accounting cycle

• temporary accounts

• closing entries

A trial balance prepared after the closing entries are posted.

• post-closing trial balance

• closing entries

• permanent account

• accounting cycle

The series of accounting activities included in recording financial information for a fiscal period.

• closing entries

• accounting cycle

• permanent accounts

• temporary accounts