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Appears on the statement of financial position. Adjust assets and liabilites to their fair market value.
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Appears on the income statement.
A All ledger accounts are closed to start the new accounting period. B All temporary accounts are closed but permanent accounts are not closed. Generally the balance sheet accounts are permanent accounts. Made to close permanent or real accounts. All temporary accounts are closed but permanent accounts are not closed Revenues expenses and dividend accounts which are closed are closed at the end of each accounting period are. The balance in a permanent account is carried forward to the subsequent year where it becomes the beginning balance for the new year.
Current Noncurrent Assets Differences Explained Permanent accounts are accounts which doesnt want to close at the end of the period.
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