Which of the following accounts are closed at the end of an accounting period?
Correct answer: C. Nominal accounts
- A. Real accounts
- B. Balance sheet accounts
- C. Nominal accounts
- D. None of them
Explanation
Nominal accounts record temporary items such as revenues, expenses, gains and losses, so they are closed into the profit and loss account at period-end. Real and balance sheet accounts normally carry their balances forward.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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