Final answer:
All Income Statement accounts are Temporary because their balances are zeroed out at the end of the accounting period during the closing process to start fresh for the new period.
Step-by-step explanation:
The correct answer to your question is A) All Income Statement accounts are Temporary. The income statement accounts, which include revenues, expenses, gains, and losses, are used to calculate net income for a specific period, such as a month or a year. At the end of the period, the balances in these accounts are transferred out to the owner's equity account (in a sole proprietorship or partnership) or to retained earnings (in a corporation) through the closing process. This makes them temporary accounts since their balances are zeroed out at the end of the accounting period, allowing the income statement to start fresh in the next period.