Permanent and Temporary Accounts a. Why are temporary accounts used b. What is the

Problem 1

Permanent and Temporary Accounts

a. Why are temporary accounts used?

b. What is the difference between a temporary account and a permanent account?

                                                       Step by Step Solution

Step 1 of 3

Accounts are prepared by the business for classifying and storing the data of transactions arising in the business. There are three types of accounts namely the real accounts, the nominal accounts, and the personal accounts.