Expenses are a fact of life. Because we all have expenses, we all need income. Hopefully our income is more than our expenses. In accounting, both income and expenses are considered temporary accounts. The reason being, both income and expenses are constantly fluid. They change daily. They come and go. There are five major accounts in accounting: Assets; Liabilities; Equity; Revenue; and Expenses. As mentioned above, revenue (income) and expenses are temporary accounts. Assets, Liabilities, and Equity are permanent accounts.
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