Is accounts payable a permanent account?
Understand the Problem
The question is asking whether accounts payable is classified as a permanent account within the context of accounting principles. Permanent accounts are those that carry their balances into future accounting periods, while temporary accounts are closed at the end of an accounting period.
Answer
Accounts Payable is a permanent account.
The final answer is that Accounts Payable is a permanent account.
Answer for screen readers
The final answer is that Accounts Payable is a permanent account.
More Information
Permanent accounts, also known as real accounts, include balances that carry over from one accounting period to the next. These include asset, liability, and equity accounts.
Tips
A common mistake is confusing permanent (real) accounts with temporary (nominal) accounts, which are closed at the end of each accounting period.
Sources
- What Is a Permanent Account? | AccountingCoach - accountingcoach.com
- Temporary vs Permanent Accounts | F&A Glossary - BlackLine - blackline.com
- How to Differentiate between Temporary and Permanent Accounts ... | HighRadius - highradius.com
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