Accounts that are used to describe revenues, expenses, and owner's withdrawals, andare closed at the end of the reporting period, are:
A)Ledger accounts.
B)Closing accounts.
C)Permanent accounts.
D)Temporary accounts.
E)Real accounts.

Question

Quizplus · Accepted Answer

Accounts used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period are known as temporary accounts. These accounts are temporary because they are only used to accumulate information for a specific period and are then closed out to a permanent account or zeroed out. This process prepares the accounts for the upcoming period and ensures that the company's financial statements accurately reflect its current financial position. Examples of temporary accounts include revenue accounts, expense accounts, and owner's withdrawal accounts.

Accounts That Are Used to Describe Revenues, Expenses, and Owner's