Similarities & Differences Between Temporary Accounts And Permanent Accounts
Temporary And Permanent Accounts / Temporary Accounts VS Permanent Accounts Temporary Accou nt s are closed to Income Summary Accoun t at the end of the accounting period / accounting cycle while Permanent Account s are transferred to Post-Closing Trial Balance and then to balance sheet and closed only on the Liquidation of the business. Temporary accounts show the profitable or earning activities of the owners of the business for the period while permanent accounts show the financial position of the business on particular time. Examples of temporary accounts are Revenues, Expenses, Gains, Losses while examples of Permanent accounts are Assets, Liabilities and Equity. Temporary accounts are shown only in A djusted Trial Balance while permanent accounts are also shown in P ost-Closing Trial Balance . Similarities B etween Temporary Accounts And Permanent Accounts B oth are the parts of Financial Statement s . ...