Asked by Brooke Ramsey on May 02, 2024
Verified
Which of the following account groups includes nominal accounts?
A) Cash, Dividends, Wages Payable
B) Prepaid Insurance, Equipment, Fees Earned
C) Common Stock, Dividends, Net Income
D) Rent Revenue, Fees Earned, Miscellaneous Expense
Nominal Accounts
Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts.
Account Groups
Classifications of accounts that share common characteristics, used to organize and summarize financial information in the general ledger.
Cash
Money in the form of bills or coins; an asset that is readily available for transactions.
- Identify and classify different types of accounts (assets, liabilities, equity, revenues, and expenses) and understand their roles in financial accounting.
Verified Answer
MP
Manjil ParajuliMay 09, 2024
Final Answer :
D
Explanation :
Nominal accounts include revenue, expense, and income statement accounts which are used to track income and expenses over a specific period of time. As such, the account group that includes nominal accounts is D, which includes Rent Revenue, Fees Earned, and Miscellaneous Expense.
Learning Objectives
- Identify and classify different types of accounts (assets, liabilities, equity, revenues, and expenses) and understand their roles in financial accounting.
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