In the discussion forum, you are expected to participate often and engage in deep levels of discourse. Please post your initial response by Sunday evening and continue to participate throughout the unit. You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates’ initial posts. You should also respond to anyone who has responded to you. The full "accounting cycle" which culminates in closing the books and producing financial statements. Discuss the differences between Permanent "real" accounts and Temporary ¨nominal¨ accounts:
1. What type of information is contained in nominal accounts, and what type of information is contained in real accounts?
2. Which financial statement contains the information from nominal accounts and which contains the information from real accounts?
3. Provide an example of real accounts and an example of nominal accounts.

The Accounting Cycle: Permanent and Temporary Accounts

1. The information that is contained in the nominal accounts is revenues and expenses, incomes, and losses.  The information that is contained in the real accounts is assets, liabilities, and equity.

2. Income Statement and Statement of Retained Earnings contain the information from nominal accounts.  Balance Sheet contains information from real accounts.

3. An example of a real account is Accounts Receivable.  An example of a nominal account is Service Revenue.

Explanation:

The differences between real or permanent accounts and nominal or temporary accounts are that permanent accounts include assets, liabilities, and equity accounts while temporary accounts include revenues and expenses.  Permanent accounts are not closed to a financial period but rolled over from one accounting period to the next.  Temporary accounts, on the other hand, are closed in the financial period.  They do not roll over to the next period because their net effects are closed to a permanent account (equity).

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: