Permanent Accounts Include All Balance Sheet Accounts

question 130

True/False

Permanent accounts include all balance sheet accounts.

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Definitions:

Check Clearing

The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.

Bank Time

A policy where employees can accumulate hours of work time to use at a later date, often for leave purposes.

Float

The time difference between when a bank transaction is initiated and when it is completed, allowing funds to appear available in the account before they actually are.

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.