Question

Method of accounting in which nominal accounts are not maintained is ____________.

• A. Single entry system
• B. Double entry system
• C. Financial accounting
• D. Book keeping and accountancy

Answer 1

Answer: (A)

Single entry system

Profit or loss earned by the business under single entry system is based on the difference between its opening and closing capital.
Hence, such capitals are a result of Statement of affairs which is based on an equation Capital = Assets - Liabilities this equation comprises of only personal and real accounts.
Hence, nominal accounts are not maintained under single entry system.