Question

Income and Expenditure Account is a ________ Account.

Options

• Capital 

• Real

• Personal

• Nominal

Answer 1

Income and Expenditure Account is a Nominal Account.

Explanation:

This account records only revenue expenses and Income of current year only. It is similar to Profit and Loss Account. It is prepared to find out surplus (i.e. excess of Income are Expenditure) or Deficit i.e. excess of Expenditure over Income.). Income and Expenditure Account is always accompanied with Balance Sheet.