Nominal accounts are called temporary accounts because their balances are carried forward to the next accounting period.

Name: Nominal accounts are called temporary accounts because their balances are carried forward to the next accounting period.
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Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period; instead, they are closed to the income summary account at the end of the accounting period.

Nominal Accounts Are Called Temporary Accounts Because Their Balances Are