Question

Which of the following actions impacts the nominal accounts of a business?

Options

• Selling goods on credit.

• Recording depreciation on machinery.

• Purchasing a building for cash.

• Transferring profits to the capital account.

Answer 1

Recording depreciation on machinery.

Explanation:

Nominal accounts deal with expenses, losses, incomes, and gains. Depreciation is an expense, so recording depreciation impacts the nominal accounts.