An account in which the balance is not carried over from one accounting period to the next is called a
A) permanent account.
B) real account.
C) temporary account.
D) zero account.

Question

Quizplus · Accepted Answer

Temporary accounts are used to record transactions for a specific accounting period and their balances are closed at the end of the period. Examples of temporary accounts include revenue, expenses, and dividends. Permanent accounts, on the other hand, are used to track long-term assets, liabilities, and equity and their balances are carried over from one accounting period to the next. Real accounts refer to accounts related to assets or liabilities, while zero accounts do not exist in accounting terminology.

An Account in Which the Balance Is Not Carried Over