Multiple choice

Goods misappropriated by an employee account is

  1. personal A/c

  2. real A/c

  3. nominal A/c

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Goods misappropriated by an employee is treated as an expense or loss to the business. Nominal accounts include all expenses, losses, incomes, and gains. Since misappropriation represents a loss, it's recorded in a nominal account.

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