Is Service Revenue A Permanent Or A Temporary Account
Service Revenue Is A Temporary Account But Not A Permanent Account Service Revenue is a Temporary Account and recorded in Income Statement . Service revenue is closed to Income Summary Account at the end of the accounting period i.e., it is zero out and has no balance to be able to transfer it to the balance sheet. Service revenue is not a Permanent Account as it is not a Balance Sheet Account but an Income Statement Account . For example, a company received fees for providing transportation services to its clients is a service revenue for the period and recorded in income statement as a direct revenue and closed to income summary account at the end of the accounting period as it is a temporary account.