Which of the following accounts are temporary accounts that must be closed at the end of the year?
A) Assets, liabilities and withdrawals
B) Revenues, expenses and withdrawals
C) Assets, liabilities and capital
D) Revenues, expenses and capital

Question

Quizplus · Accepted Answer

Revenues, expenses and withdrawals are considered temporary accounts because they are specific to a certain period of time, usually a year. At the end of each accounting period, these accounts need to be closed and their balances transferred to permanent accounts such as retained earnings or capital accounts. Assets, liabilities and capital accounts are permanent accounts and do not need to be closed at the end of the year.

Which of the Following Accounts Are Temporary Accounts That Must