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. 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.