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Commerce · Q96

Accounting

Graduate and Post Graduate · Commerce · question 96

Q96

Revenue and expense accounts are referred to as

A.
Nominal accounts
Answer
B.
Real account
C.
Cash account
D.
Bank account

Answer: Option A

Solution

Answer: Option A
Solution:
Revenue and expense accounts are referred to as Nominal accounts because each period they are closed out to Income Summary in the closing process.