Question

An account that is not closed at the end of period is call?

Answer 1

An account that is not closed at the end of period is called a permanent account or a real account. All balance sheet accounts are in the nature of permanent accounts. The balance in the permanent accounts is a cumulative balance as of a particular date unlike the temporary accounts which are for a period of time such as the income statement accounts. Examples of permanent accounts are cash, accounts receivable, allowance for doubtful accounts, inventories, accounts payable, owner’s capital, etc. The end of period balance in a permanent account is carried over to the next period.