Income and expense accounts can be referred to as:
A) normal accounts.
B) permanent accounts.
C) temporary accounts.
D) profit accounts.

Question

Quizplus · Accepted Answer

Income and expense accounts are temporary accounts as their balances are only applicable for a specific accounting period and are transferred to the permanent accounts (such as retained earnings or capital accounts) at the end of the period. Normal accounts are those accounts that follow the accounting equation (Assets = Liabilities + Equity), while permanent accounts are accounts that carry forward the balances from one accounting period to another. Profit accounts is not a commonly used term in accounting.

Income and Expense Accounts Can Be Referred to As