Final answer:
A temporary account relates to a specific accounting period, collecting information about revenues, expenses, and drawings, and is closed out at the end of that period to permanent accounts.
Step-by-step explanation:
Temporary accounts are used to track revenues, expenses, and gains or losses for a specific period. These accounts are closed at the end of the accounting period to reset their balances to zero and transfer their balances to permanent accounts. Examples of temporary accounts include revenue accounts, expense accounts, and the owner's draw account.
Therefore, the correct answer is: 1) Temporary.
An account that relates to a particular accounting period and is closed at the end of that period is called a temporary account. These accounts include revenue, expense, and drawing accounts, which are used to collect information about a specific accounting period and are reset by transferring their balances to permanent accounts at the end of the period. This is in contrast to permanent accounts, such as assets, liabilities, and equity accounts, which carry their balances over into future accounting periods. Temporary accounts are essential for the preparation of accurate financial statements and help ensure that each period's income and expenditure can be correctly reported.