Definition of Nominal account:
An account recording the financial transactions of a business in a particular category, rather than with a person or other organization.
Revenue or expense account that is a subdivision of the owners equity account, and which is closed to a zero balance at the end of each accounting period. It starts with a zero balance at the beginning of a new accounting period, accumulates balances during the period, and returns to zero at the year end by means of closing entries. Nominal accounts are income statement accounts and are also called temporary accounts in contrast to balance sheet (asset, liability, and owners equity) accounts which are called permanent accounts or real accounts..
How to use Nominal account in a sentence?
- I spent my weekend tracking down a penny discrepancy in Docs nominal account , which had appeared after last quarters closing.
- You may want to keep a nominal account that will allow you greater flexibility within your current financial state at that time.
- I had to check my nominal account to see how everything was going and it made me really happy to realize that.
Meaning of Nominal account & Nominal account Definition