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Nominal accounts reflect the financial position of a business at a given point in time. - Commercial Applications

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Question

Nominal accounts reflect the financial position of a business at a given point in time.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

Nominal accounts record expenses, losses, incomes, and gains and help calculate profit or loss. The financial position of a business is shown by Real and Personal accounts (Balance Sheet), not Nominal accounts.

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Chapter 11: Nature and Terminology of Accounting - EXERCISES [Page 134]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 11 Nature and Terminology of Accounting
EXERCISES | Q I. 14. | Page 134
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