Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are
A) Financial accounts
B) Temporary accounts
C) Closing accounts
D) Permanent accounts
E) Summary accounts

Question

Quizplus · Accepted Answer

Temporary accounts are accounts that are used to record revenues, expenses, and owner's withdrawals for a specific period of time. They are temporary because they are closed at the end of the reporting period (usually at the end of the fiscal year) and their balances are transferred to the owner's equity account or to a retained earnings account. The purpose of closing temporary accounts is to reset the balances to zero and start fresh for the next reporting period. Examples of temporary accounts include revenue accounts, expense accounts, and owner's withdrawal account.

Accounts That Are Used to Describe Revenues, Expenses, and Owner's