BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -It is false that a permanent account is another name for a nominal account. Another name for a nominal account is a temporary account. Nominal accounts are closed at the end of the period and their balances are set to zero for the next period by transferring their balances to permanent or real accounts.

Detailed explanation-2: -A nominal account starts the next fiscal year with a zero balance, while a real account starts with the ending balance from the prior period. A nominal account is also known as a temporary account, while a real account is also known as a permanent account.

Detailed explanation-3: -Permanent accounts are the ones that continue to record the cumulative balances over time. Accounts receivable is an example of permanent accounts. Other examples of permanent accounts are-asset, liability, equity, accounts payable, inventory, and investments.

Detailed explanation-4: -Nominal Accounts are accounts related to and associated with losses, expenses, income, or gains. Examples include a purchase account, sales account, salary A/C, commission A/C, etc.

Detailed explanation-5: -Bank account is an example of personal account and not nominal account. All the accounts related to an individual, a firm or a company are termed as a personal accounts.