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Normal Balance
The side (debit or credit) of an account that is expected to have a higher balance, determining the account's increase direction.
Financial Statement
Reports that summarize a company's financial performance, status, and cash flows over a specified period.
Permanent/Temporary
A classification that distinguishes between actions or objects that are intended to last indefinitely (permanent) and those expected to change or conclude after a certain period (temporary).
Normal Balance
The side of the accounting equation (debit or credit) where increases in the account are recorded.
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