Accounts Whose Balances Apply to One Fiscal Period Only Are

question 21

True/False

Accounts whose balances apply to one fiscal period only are called permanent accounts.

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Definitions:

Payroll

The total amount of money paid by a business to its employees over a set period, including wages, salaries, bonuses, and deductions.

Retained Earnings

The portion of net income that is not distributed as dividends to shareholders but is kept by the company for reinvestment or to pay off debt.

Ledger Accounts

Record-keeping systems that track financial transactions through debits and credits to maintain the financial health and status of an entity.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, including the balance sheet, income statement, and cash flow statement.