Is cash a temporary account?
Understand the Problem
The question is asking whether cash is classified as a temporary account in accounting. To address this, we need to clarify the distinction between temporary (or nominal) accounts and permanent accounts, and specifically place cash within that context.
Answer
Cash is a permanent account.
The final answer is that cash is a permanent account.
Answer for screen readers
The final answer is that cash is a permanent account.
More Information
Cash is considered a permanent account because its balance is carried over from one accounting period to the next.
Sources
- Temporary Accounts vs. Permanent Accounts | Differences & More - patriotsoftware.com
- What is a permanent account? | AccountingCoach - accountingcoach.com
- Temporary vs Permanent Accounts: What's the Difference? - ebizcharge.com
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