Temporary accounts are those accounts with balances that are brought forward to the next accounting period.

Question

Quizplus · Accepted Answer

Temporary accounts have their balances closed at the end of the accounting period and are not carried forward to the next period. Examples of temporary accounts include revenues, expenses, gains, and losses. In contrast, permanent accounts have balances that are carried forward to the next accounting period, such as assets, liabilities, and equity.

Temporary Accounts Are Those Accounts with Balances That Are Brought