Multiple choice general knowledge

Nominal account having credit balance represents:

  1. Assets

  2. Expenses and losses

  3. Income and gain

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

Nominal accounts record income, expenses, gains, and losses. A credit balance indicates income or gains because these are credited when earned or realized, whereas debit balances in nominal accounts represent expenses or losses.

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