Tag: Temporary Accounts
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Bookkeeping – Restricted Accounts (Lesson 81)
The third group of temporary accounts comprise restricted accounts. These accounts are classified with the term ‘restricted’ due to a legally mandated or contractual obligation to limit access to their funds. Most often, restricted accounts consist of cash or some physical asset.
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Bookkeeping – Internal Accounts (Lesson 79)
Internal accounts are used by management to clarify information, account for interdepartmental activities and address temporary bookkeeping issues.
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Bookkeeping – Temporary Accounts (Lesson 78)
Temporary accounts are financial and process control tools used by management to achieve financial goals. They are composed of internal, regulator and restrictive accounts. They are opened at the beginning of an accounting period and closed prior to the end of an accounting cycle.