Income statement accounts often are called temporary accounts because their balances are closed out at the end of the accounting year.

Name: Income statement accounts often are called temporary accounts because their balances are closed out at the end of the accounting year.
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Revenue, expense, gain, and loss accounts are used to accumulate data for the current accounting period only; these accounts are closed out at the end of the accounting period and are found on the income statement.

Income Statement Accounts Often Are Called Temporary Accounts Because Their