Multiple choice

What type of account is a consignment account?

  1. Real account

  2. Personal account

  3. Nominal account

  4. Suspense account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Consignment account is a nominal account because it records all expenses, incomes, and ultimately the profit or loss arising from the consignment transaction. It is not a real account (which represents assets) or a personal account (which represents persons/entities). The account is closed at the end of the consignment period by transferring the profit or loss to the consignor's account.

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