What Is a Clearinghouse? Explain with the Help of an Example

question 17

Essay

What is a clearinghouse? Explain with the help of an example.

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Definitions:

Temporary

Pertaining to or lasting for a limited time; in accounting, referring to accounts that are closed at the end of each accounting period, such as revenue and expense accounts.

Permanent

Refers to accounts or records in accounting that are not closed at the end of the accounting period and are carried over into the next period.

Temporary

Pertains to something not permanent or lasting only for a limited period of time.

General Journal

A primary accounting record used to record all types of transactions not assigned to any specialized journal.