Permanent accounts are not closed at the end of the accounting period.

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Permanent accounts, also known as real accounts, are balance sheet accounts that are not closed at the end of the accounting period. Examples include assets, liabilities, and equity accounts. In contrast, temporary accounts such as revenue, expense, and dividend accounts are closed at the end of the accounting period to reset their balances to zero and transfer the amounts to the retained earnings account.

Permanent Accounts Are Not Closed at the End of the Accounting