What is the difference between Real Accounts and Nominal Accounts? - ProProfs Discuss
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What is the difference between Real Accounts and Nominal Accounts?

Asked by R. Barnes, Last updated: Oct 25, 2020

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A. Samuel

A. Samuel

Writing quality content for contentment has been my passion since i was 21. I've been pursuing it as a Content Manager and Producer.

A. Samuel
A. Samuel, Content Manager, Masters in Marketing and accounting, Florida

Answered Jul 11, 2019

Nominal accounts are also called temporary or provisional accounts, and they are marked as the account types that ascertain the net profit and loss on the balance sheets. The exact accounts are also known as permanent accounts, and they are kept open throughout a year, as it’s balanced are carried forward to the next accounting year.

Nominal accounts are also called temporary or provisional accounts, and they are marked as the
Minimal accounts are closed and filed away at years end. Real or exact accounts are not closed at the end of an accounting period. Real accounts contain statements such as incomes, gains, expenses, and losses.

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