Question

Manufacturing a/c is also called as __________.

• A. nominal a/c
• B. real a/c
• C. personal a/c
• D. dummy a/c

Answer 1

Answer: (A)

nominal a/c

Nominal account in accounting are the temporary accounts, such as the income statement accounts. All expenses which related to either purchases or manufacturing of goods are nominal accounts. The dictionary meaning of the word "nominal" is "existing in name only" and the meaning remains absolutely true in accounting sense too, because nominal accounts do not really exists in physical form, but behind every nominal account money is involved.