Which of the following defines temporary accounts?

Temporary accounts are defined as those accounts that are closed at the end of each accounting period. This closure process is essential in accounting as it allows the business to reset these accounts to zero for the next period, thus starting fresh each time. Temporary accounts include revenues, expenses, and dividends, all of which are influenced by the operations of the business over a particular period. By closing these accounts, the financial results for that specific period can be accurately reflected in the financial statements.

This practice ensures that only current period transactions are considered in the income statement for that period, while any accumulated profits or losses can be carried forward to retained earnings, which is a permanent account. Other account classifications, such as permanent accounts, do not undergo this reset, which is why understanding the nature of temporary accounts is crucial in the broader context of accounting principles.