What type of account is used to accumulate revenues and expenses for a single accounting period?

The correct answer is temporary account because this type of account is specifically designed to hold financial information for a single accounting period. At the end of the period, the balances in temporary accounts, which typically include revenue, expense, and dividend accounts, are closed out and transferred to a permanent account, usually the retained earnings account in the equity section of the balance sheet.

This mechanism allows for the tracking of financial performance over specific time frames, such as a month, quarter, or year, ensuring that revenues and expenses are recorded in the correct accounting period. As a result, temporary accounts do not carry their balances into subsequent periods, making them essential for accurate financial reporting and management within the context of accrual accounting.

In contrast, permanent accounts continue to accumulate balances over multiple periods, reflecting the ongoing financial situation of the entity. Capital accounts and equity accounts are also types of permanent accounts that track a business's long-term financial status, but they do not serve the same purpose as temporary accounts in the context of periodical revenue and expense tracking.