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What is a nominal account?
36. What is a nominal account?
- An interest-bearing deposit account held at a bank or other financial institution.
- The account that represents a country's imports and exports of goods and services.
- The account in which accounting transactions are stored for one fiscal year.
- None of the above
Answer: C) The account in which accounting transactions are stored for one fiscal year
Explanation:
Nominal accounts are used to collect accounting transaction information for revenue, expense, gain, and loss transactions, all of which appear in the income statement.