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Accounting
Chapter 5
Term | Definition |
---|---|
Permanent accounts | Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and owner's capital accounts). |
Temporary capital accounts | Accounts used to record information during the fiscal period that will be transferred to a permanent capital account at the end of the period. |
Revenue recognition | Accounting principle that states that revenue is recognized and recorded on the date it is earned even if cash has not been received. |