Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 3 - The Accounting Information System - Review and Practice - Questions - Page 127: 4


Ideally, both the revenue and the expense accounts are referred to as temporary/nominal accounts due to the fact that, each period they are closed out to income summary in the closing process.

Work Step by Step

Normally, there balances are reduced to zero at the end of the accounting period and therefore; the term temporary or nominal is given to these accounts.
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