Because income and expenses are accumulated for only one year they are known as:
A) temporary accounts.
B) permanent accounts.
C) short-term accounts.
D) yearly accounts.

Question

Quizplus · Accepted Answer

Income and expenses are temporary accounts because they are only relevant to a specific period of time (usually one year). In contrast, permanent accounts such as assets, liabilities, and equity are carried over from year to year.

Because Income and Expenses Are Accumulated for Only One Year