Balance sheet accounts are also known as which of the following?
A)Nominal accounts
B)Real accounts
C)Temporary accounts
D)Closing accounts

Question

Quizplus · Accepted Answer

Balance sheet accounts are also known as real accounts because they track the assets, liabilities, and equity of a company, which represent actual and tangible items. Real accounts are permanent in nature and carry forward their balances to the next accounting period. Nominal accounts are revenue and expense accounts, which are temporary in nature and are closed at the end of the accounting period. Temporary accounts track the flow of money in and out of a business and are not included in the balance sheet. Closing accounts refer to the process of transferring the balances of temporary accounts to the retained earnings account at the end of the accounting period.

Balance Sheet Accounts Are Also Known as Which of the Following