Which of the Following Account Groups Are Nominal Accounts

question 46

Multiple Choice

Which of the following account groups are nominal accounts?

• A) Cash, Dividends, Wages Payable
• B) Prepaid Insurance, Equipment, Fees Earned
• C) Common Stock, Dividends, Income Summary
• D) Rent Revenue, Fees Earned, Miscellaneous Expense

Understand the key components and differences in budget structures between merchandisers and manufacturers.

Identify and describe the roles and responsibilities within the budget preparation process in companies.

Match key budgeting terms with their definitions to understand various types of budgets and their purposes.

Comprehend the concept of a master budget and its significance as a comprehensive financial planning tool.

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Definitions:

Net Income

The net income of a company following the subtraction of all costs and taxes from the gross revenue.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash.

Annual Financial Statements

Reports that give an overview of a company's financial condition for a specific fiscal year, including income statements, balance sheets, and cash flow statements.

December 31

The last day of the year in the Gregorian calendar, often used as the end date for annual financial statements.