Accounts that relate to a limited period are called:

Question

Quizplus · Accepted Answer

Temporary accounts relate to a limited period and are used to track and record transactions that only impact an organization over a short period. Examples include revenue, expenses, and dividends accounts. These accounts are closed at the end of the accounting period and their balances are transferred to the retained earnings account or the income summary account. Asset and liability accounts, on the other hand, relate to a longer period and are considered permanent accounts. Real accounts refer to accounts that involve tangible items and are not related to their time period, such as property, plant, and equipment accounts.

Accounts That Relate to a Limited Period Are Called