Question

Nominal account are related to ..............
(a) assets and liabilities (b) Expenses and income (c) customers and creditors (d) none of these​

Answer 1

Answer:

b) Expenses and income

Answer 2

Nominal accounts are related to ..............

(a) assets and liabilities (b) Expenses and income

(c) customers and creditors (d) None of these

The correct answer is :

(b) Expenses and income

Explanation :

The nominal account deals with expenses and income.

The accounts in which the details of income, revenue, profit, loss etc. are recorded are called nominal accounts. These accounts do not represent any tangible asset. That is why they are also called fictitious accounts. A separate account is maintained for any profit or loss or income or expenditure. In the nominal account, all expenses and losses are debited and all income and profit are credited.

Example: Wage account. Rent Account, Commission Account

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