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Trading account is not a nominal account.

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Question

Trading account is not a nominal account.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

A trading account is a nominal account prepared to ascertain gross profit or loss for the accounting period. It records revenue-related items (sales, purchases, direct expenses) and is then closed into the Profit & Loss Account.

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Chapter 7: Final Accounts of Sole Proprietorship - EXERCISES [Page 119]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 41. | Page 119
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