BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The accounts that records expenses, gains and losses are
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Personal accounts
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Real accounts
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Nominal accounts
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None of the above
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Explanation:
Detailed explanation-1: -Transactions related to income, expense, profit and loss are recorded under this category.
Detailed explanation-2: -Accounts which are related to expenses, losses, incomes or gains are called Nominal accounts.
Detailed explanation-3: -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-4: -All revenue and expense accounts are nominal accounts. The major difference between these two types of accounts is that the balances of nominal accounts zero out at the end of each accounting period and do not accrue like the balances of real accounts.
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