Temporary account
Temporary account (also known as nominal account) is an account whose balances at the end of an accounting period are not carried over to the next accounting period.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Temporary account (also known as nominal account). An account whose balances at the end of an accounting period are not carried over to the next accounting period.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
