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Yes, prepaid expenses should be a nominal account. Prepaid expenses are not assigned to a particular organization, but rather a category.

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11y ago

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Are prepaid expenses a nominal account?

Prepaid expenses are the part of nominal account expenses which are not used during the current accounting period. They cannot be charged to profit and loss account as per matching concept. They find place in balance sheet and written off in the next accounting period.


Is prepaid insurance account a nominal account?

No, it is a real/permanent account. Insurance expense is a nominal account.


What is a nominal account?

Land and Buildings; and Office Machinery A nominal account is account for income and expenses e.g Rent and rates account or subscription account.


Examples of nominal account?

Examples of nominal accounts are losses and expenses of gains or income.


Definition of nominal real and personal accounts?

A nominal real account represents incomes, gains, expenses, and losses. A personal account represents a person's and organization's expenses.


Why some authors says that sales are nominal account?

no sales is not a nominal account. because nominal account says" debit all expenses and credit all income and gain account. " all things which are tangible is call real account. u can touch the goods..Land and Buildings; and Office Machinery A nominal account is account for income and expenses e.g Rent and rates account or subscription account.


Is drawings account is Nominal or Personal account?

Drawings Account is a Nominal Account. Nominal accounts record liabilities, expenses, revenues, capital and drawing. Examples of nominal accounts are loan account, sales account, commission received account, salaries account, rent account, capital account, drawings account etc.


Is account sales a nominal account?

no sales is not a nominal account. because nominal account says" debit all expenses and credit all income and gain account. " all things which are tangible is call real account. u can touch the goods which are going to sale. Sale is nominal account as sale generally have some element of profit. This is the good reason to treat the sale as nominal account.


What things come under nominal account?

All the expenses and incomes are recorded in nominal accounts, whether capital or revnue nature


Is A capital account considered a nominal account?

yes it it is because income


What is the meaning of nominal account and real account and personal account?

The account related to the individual firm , company,and institution is called personal account. THE account related to the things or properties of business organisation whose valuation can be done in terms of cash is called real account. the account related to the income , expenses,profit and gain is called nominal account. .


Is depreciation account nominal account?

yes ! it comes under nominal account !!