Income and expenses are accumulated for only one year and are therefore known as:
A) current accounts.
B) short-term accounts.
C) yearly accounts.
D) temporary accounts.

Question

Quizplus · Accepted Answer

Income and expenses are indeed accumulated over a single accounting period (usually one year) and then closed out to equity. This process makes them temporary accounts, as they are reset at the end of each period.

Income and Expenses Are Accumulated for Only One Year and Are