At the end of the accounting period,the balances in the nominal accounts are closed while the balances in the real accounts are carried forward to the next period.

Question

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This statement is correct. Nominal accounts are closed at the end of the accounting period by transferring their balances to the Profit and Loss Account or Income and Expenditure Account, while the balances in real accounts are carried forward to the next period as they represent assets, liabilities or equity.

At the End of the Accounting Period,the Balances in the Nominal