Nominal Accounts Are Also Called

question 60

Multiple Choice

Nominal accounts are also called

• A) temporary accounts.
• B) permanent accounts.
• C) real accounts.
• D) None of these answers are correct.

---

Definitions:

Capital Balances

The amount of money that owners have invested in a company, minus any withdrawals, often shown in the equity section of the balance sheet.

Net Income

A company's profit remaining after all expenses, taxes, and losses have been deducted.

Closing the Revenue

The process of finalizing all revenue transactions within a given period, marking the end of a business's revenue cycle for that timeframe.

Partnership Capital

The total capital contributions made by all partners in a partnership, which is used in the business operations.