Balance Sheet Accounts

These accounts are related to one or more future periods and include all equity, asset and liability accounts. Contra-asset accounts like accumulated depreciation are also included in this category. Balance Sheet accounts are also known as real accounts or permanent accounts as they are not closed from period to period and unlike the case of temporary accounts, a company carries forward the balances of all permanent accounts into the next accounting period. It is important for a company to distinguish between permanent accounts and temporary accounts when closing its books to make the accounts ready for the next accounting period.