Which of the Following Account Groups Are All Considered Nominal

question 23

Multiple Choice

Which of the following account groups are all considered nominal accounts?

• A) Cash, Retained Earnings, Wages Payable
• B) Prepaid Insurance, Property, Plant & Equipment, Fees Earned
• C) Capital Stock, Dividends, Income Summary
• D) Rent Revenue, Fees Earned, Miscellaneous Expense

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Definitions:

Gross Margin Percentage

A financial metric that represents the difference between sales and cost of goods sold, expressed as a percentage of sales.

Year 2

The second year in a sequence, often used in financial and operational planning or analysis.

Debt-to-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholders' equity; it indicates the proportion of equity and debt the company is using to finance its assets.

Year 2

A reference to the second year in a given context, typically used in financial forecasting or product development timelines.