An account whose balance is transferred to another account at the end of an accounting period is a temporary account.

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Temporary accounts, such as revenue and expense accounts, are closed at the end of an accounting period by transferring their balances to a permanent account (such as retained earnings or owner's equity). This process is called closing entries. Thus, the balance of a temporary account is not carried forward to the next accounting period, but is zeroed out and the account is reset for the new period.

An Account Whose Balance Is Transferred to Another Account at the End