Question

Trading account is a _________ account.

• A. personal
• B. real
• C. nominal
• D. none of these

Answer 1

Answer: (C)

nominal

Trading account is prepared by a firm to record all it's income and expenses to find out the profit or loss attained during the year.

Nominal accounts are the ones which records all incomes and expenses to find out net profit or loss. Thus, trading account is a type of nominal account because it matches all the conditions of any nominal account.