Balance Sheet Accounts Are Called__________ Accounts Because They Carry Their

question 125

Short Answer

Balance sheet accounts are called__________ accounts because they carry their balances to the next accounting period, and are not closed as long as the company continues to own the asset, owe the liability and have equity.

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Definitions:

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.

Economic Growth

The growing ability of the economy to produce goods and services.

Industry-specific

Pertains to aspects or characteristics unique to a particular industry or sector.

Lemons

A colloquial term in economic theory often referring to products of inferior quality sold because of asymmetric information between buyers and sellers.