The statement of profit or loss is a Nominal account.

Here's why:

In accounting, accounts are classified into five categories: assets, liabilities, equity, revenue, and expenses. These categories are further divided into three types of accounts: Personal, Real, and Nominal.

1. Personal Account: This account is related to individuals, firms, and companies. For example, Mr. A’s account, ABC Ltd.’s account, etc.

2. Real Account: This account is related to assets and properties. For example, building account, machinery account, etc.

3. Nominal Account: This account is related to expenses, losses, income, and gains. For example, rent account, salary account, etc.

The statement of profit or loss falls under the Nominal account as it deals with the company's income, gains, expenses, and losses.

Question

The statement of profit or loss is a Nominal account.

Here's why:

In accounting, accounts are classified into five categories: assets, liabilities, equity, revenue, and expenses. These categories are further divided into three types of accounts: Personal, Real, and Nominal.

1. Personal Account: This account is related to individuals, firms, and companies. For example, Mr. A’s account, ABC Ltd.’s account, etc.

2. Real Account: This account is related to assets and properties. For example, building account, machinery account, etc.

3. Nominal Account: This account is related to expenses, losses, income, and gains. For example, rent account, salary account, etc.

The statement of profit or loss falls under the Nominal account as it deals with the company's income, gains, expenses, and losses.

Knowee AI · Accepted Answer

The statement of profit or loss is a Nominal account.

Here's why:

In accounting, accounts are classified into five categories: assets, liabilities, equity, revenue, and expenses. These categories are further divided into three types of accounts: Personal, Real, and Nominal.

1. Personal Account: This account is related to individuals, firms, and companies. For example, Mr. A’s account, ABC Ltd.’s account, etc.

2. Real Account: This account is related to assets and properties. For example, building account, machinery account, etc.

3. Nominal Account: This account is related to expenses, losses, income, and gains. For example, rent account, salary account, etc.

The statement of profit or loss falls under the Nominal account as it deals with the company's income, gains, expenses, and losses.

tatement of profit or loss is a ……a.Personal accountb.Special accountc.Real accountd.Nominal accountClear my choice

Question

Solution

Similar Questions

Upgrade your grade with Knowee