Permanent account definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Permanent account can be defined as: Accounts that reflect activities related to one or more future period; balance sheet accounts whose balances are not closed; also called real accounts. Permanent accounts can be contrasted against temporary accounts, permanent accounts being accounts that are not cleared out to zero during the closing process, temporary accounts being cleared out two zero during the closing process. Permanent accounts are balance sheet accounts, permanent accounts including assets, liabilities, and equity. Permanent accounts do not include income statement accounts or draws, these accounts being temporary accounts.
