Which of the following is a nominal account?
1.Accounts Receivable
2.Loan Account
3.Bad Debts Account
4.Ram’s Account
Answers
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BAD Debts Account ....
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6
Answer:
Option C: Bad Debts account is a nominal account.
Explanation:
Nominal accounts are the temporary type of accounts, like the income statement accounts. The report revenues or expenses or gains which are closed at the end of each accounting year are the nominal accounts.
Bad debts expense is also called doubtful accounts expense.
Accounts receivable and loan account, Option A and B respectively, are not nominal accounts. Option D, Ram;s account is definitely not a nominal account as Ram is a name of a person. So, Option C, Bad Debts account is a nominal account.
To learn more on nominal accounts:
https://brainly.in/question/2313702
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