Which feature distinguishes nominal accounts from real accounts in closing entries? Options: (i) Temporary nature requiring closure (ii) Balance sheet presentation (iii) Permanent balances carried forward (iv) Contra account status

Which feature distinguishes nominal accounts from real accounts in closing entries? Options: (i) Temporary nature requiring closure (ii) Balance sheet presentation (iii) Permanent balances carried forward (iv) Contra account status

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 2Q: Explain what is meant by the term nominal accounts (also known as temporary accounts).

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Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Which feature distinguishes nominal accounts from real accounts in closing entries? Options: (i) Temporary nature requiring closure (ii) Balance sheet presentation (iii) Permanent balances carried forward (iv) Contra account status financial Accounting problem
Which feature distinguishes nominal accounts from real accounts in closing entries? Options: (a) Temporary nature requiring closure (b) Balance sheet presentation (c) Permanent balances carried forward (d) Contra account status
Discussion
Explain what is meant by the term nominal accounts (also known as temporary accounts).
What type of accounts are closed out at the end of the accounting period? Group of answer choices asset accounts temporary accounts doubtful accounts permanent accounts
Closing entries transfer the balances of the permanent accounts to the temporary accounts. Select one: True False
Which one of the following is not an accounting problem (issue) associated with accounts receivable? Group of answer choices Recognizing accounts receivable Depreciating accounts receivable Reporting accounts receivable Relieving accounts receivable
Identify whether a debit or credit results in the indicated change for each of the following accounts. To decrease Accounts Receivable
The preferred method of accounting for uncollectible accounts is ? A) net realizable method. B) actual method. C) allowance method. D) direct write-off method.
Which of the following entries properly closes a temporary account? Select one: a. Income Summary XX Cash b. C. Debit Credit Expense Accumulated Depreciation XX Income Summary Income Summary d. e. XX Retained Earnings XX Dividends Debit Credit Debit Credit XX Debit Credit Income Summary XX Revenue XX XX Debit Credit XX XX
Don't use ai for this general account questions.
Which account is least likely to be debited when revenueis recorded?a. Accounts Payableb. Accounts Receivablec. Cashd. Unearned Revenue