Trading account is a ______________.

Personal account

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Real account

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Nominal account

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Valuation account

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Solution

The correct option is C Nominal account
Trading account is nominal account which is prepared at the end of accounting year. It helps to find out gross profit or gross loss during the accounting period.
Trading account consists of two sides 'debit and credit'. All direct expenses are debited and direct incomes are credited in trading account.

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Similar questions

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

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