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The administrative concept of neutral competence holds that the bureaucracy should
Temporary Accounts
Accounts that are closed at the end of each accounting period; examples include revenue, expense, and dividend accounts.
Owner's Capital Account
An account that represents the total equity or ownership interest of the owner(s) in a business, reflecting contributions and withdrawals.
Closing Entries
Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.
Ledger
A book or other collection of financial accounts where all transactions are summarized and recorded.
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