Another Name For Temporary Accounts Is What?

Temporary Account Is Also Called What In Accounting?

Another name for Temporary Accounts is Nominal Account as this shows those accounts (Revenues and Expenses, Gains and Losses) which are closed at the end of the accounting period. Examples of these accounts are sales revenue account, commission revenue account, purchases account, rent expenses, sundry expense account, salaries expense account, etc.

Actually, these types of accounts have no balances, so these are closed to Income Summary Account, which is also a temporary account and this temporary account is finally closed to Retained Earnings Account.

Temporary accounts are recorded for a specific accounting period i.e., for current accounting period in which theses are incurred or earned by the business. These are incurred or earned for the profits which can be used to run the business, stabilize it, grow it and for other purposes.