Question

All expense accounts are known as _____ accounts, as they close at the end of the accounting period.

Answer 1

Temporary accounts (as stated above) - due to the fact they close after a certain time period.

Answer 2

All expense accounts are known as temporary accounts, as they close at the end of the accounting period.

Temporary accounts are closed at the end of an accounting period. Temporary accounts include everything that is on an income statement (revenue, expenses, gains and losses), drawing accounts, income summary accounts, and anything that directly contributes to the current year accounting. An expense account includes the expenses that a business has over the course of the period they are working in.