Question

Nominal Accounts are Related to

Answer 1

Accounts connected with losses, expenditure, income, or profits are known as nominal accounts. A purchase account, a sales account, a wage account, a commission account, and so on… It’s also known as a temporary account, as opposed to the permanent balance sheet accounts (Assets, Liabilities, and Owner’s Equity).

A nominal account’s sole function is to keep track of a company’s revenue and spending so that the net profit or loss for a given period may be computed. Service income, sales income, labour expense, utilities expenditure, commission, supply expenditure, and interest expenditure are examples of nominal accounts.