Income Statement accounts are also called:
A)equity accounts
B)temporary accounts
C)permanent accounts
D)None of these

Question

Quizplus · Accepted Answer

Income Statement accounts are temporary accounts because they are used to track revenues, expenses, gains, and losses for a specific period of time (usually a month or a year), and then their balances are transferred to the retained earnings account (an equity account) at the end of the accounting period. Permanent accounts, on the other hand, are balance sheet accounts that track the company's assets, liabilities, and equity, and their balances carry forward from one accounting period to the next.

Income Statement Accounts Are Also Called