Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:
A) Balance sheet accounts.
B) Temporary accounts.
C) Real accounts.
D) Permanent accounts.
E) Closing accounts.

Question

Quizplus · Accepted Answer

Revenues, expenses, and withdrawals are temporary accounts because their balances are reset to zero at the end of each accounting period. This is achieved by closing them and transferring their balances to the retained earnings account or owner's equity account. Balance sheet accounts, real accounts, and permanent accounts are not closed at the end of each period. "Closing accounts" is not a recognized category of accounts.

Revenues, Expenses, and Withdrawals Accounts, Which Are Closed at the End