What type of ledger account retains its ending balance at the close of an accounting period and carries it forward to the next period?

Explanation

• Permanent (Real) Accounts represent Balance Sheet items (assets, liabilities, and owner’s equity) whose balances carry forward indefinitely.
• Nominal (Temporary) Accounts capture income, expenses, and dividends; their balances are closed to zero at the end of each period.
• Retained Earnings receives the closing balance transfers from temporary nominal accounts.