The term "temporary account" refers to items found on your income statement, such as revenues and expenses. "Permanent accounts" consist of items located on the balance sheet, such as assets, owners' ...

The closing of revenue and expense accounts are the first two steps in a company's monthly close process. "Closing" these accounts means that the balance is reset to zero and recordkeeping can begin ...

Closing entries transfer revenue and expense balances to the retained earnings account. This process resets the temporary account balances to zero for the new accounting period. Recording closing ...

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a given ...