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Permanent Accounts
Balance sheet accounts that carry their ending balances into the next accounting period, including assets, liabilities, and equity accounts.
Closing Entry Process
The procedure at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses into the Retained Earnings account.
Temporary Accounts
Accounts used to collect information during a single accounting period, which are then transferred to permanent accounts at the end of the period.
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