Accounts that close after each completed accounting period are called:
A) temporary accounts.
B) permanent accounts.
C) equity accounts.
D) asset accounts.

Question

Quizplus · Accepted Answer

Temporary accounts are those that close at the end of each accounting period, transferring their balances to permanent accounts. This process resets the temporary accounts to zero, ready to track transactions in the new period. Permanent, equity, and asset accounts do not close each period; they carry their balances forward.

Accounts That Close After Each Completed Accounting Period Are Called