Cash, Accounts Payable, and Capital Stock are real accounts and do not get closed at the end of the period.

Question

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Real accounts, such as Cash, Accounts Payable, and Capital Stock, are permanent accounts and do not get closed at the end of the accounting period. Only temporary accounts, such as revenue, expenses, and dividends, get closed at the end of the period to transfer their balances to the retained earnings account.

Cash, Accounts Payable, and Capital Stock Are Real Accounts and Do