Question

Which of the following is not a nominal Account?

Answer 1

Explanation:

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Option a) Outstanding Salaries A/C is the only account which is not a nominal account in the question. This is a balance sheet item and can be categorized under Personal Accounts.

Answer 2

• A nominal account is one that holds accounting transactions for a single tax year. The reserves in these accounts are moved to permanent accounts at the end of the tax year.
• As a result, the nominal accounts' balances are reset to zero, and they are ready to receive a fresh set of transactions in the following fiscal year.
• Accounting transaction information for revenue, cost, gain, and loss transactions is collected using nominal accounts, which show in the income statement.
• Revenue from the sale of services, the cost of commodities sold, and deprivation of the sale of an asset are all illustration of transactions documented in nominal accounting.