Choices are nominal account or permanent account for each Question 6 6 pts For e

Question

Choices are nominal account or permanent account for each

Question 6 6 pts For each account listed below, indicate whether it is a nominal account ora permanent account. Select your answer by clicking in the drop down box to the right of each account. Be careful with matching questions because canvas randomizes the matches. Thus, if you print out the quiz to work on it and then enter your answers later in the week, it is very likely the order of the matches will be different. Therefore, exercise caution when entering your answers into canvas. Quiz scores will not be adjusted for errors in entering choices. gain on sale of land Choose ] unearned revenue [ Choose ] cost of goods sold I Choose ] retained earnings [ Choose ]

Explanation / Answer

Gain on slae of land – Nominal account

Unearned revenue – Permenant account

Cost of goods sold – Nominal Account

Retained Earning – Permenanat Account

Explanation:

The nominal accounts are almost always the income statement accounts such as the accounts for recording revenues, expenses, gains, and losses. When the income statement accounts are closed at the end of the accounting year (perhaps through an income summary account) the net amount will ultimately end up in a balance sheet equity account such as the proprietor's capital account or the corporation's retained earnings account.

The real accounts are the balance sheet accounts such as the accounts for recording assets, liabilities, and the owner's (or stockholders') equity. However, the sole proprietor's drawing account, which is reported on the balance sheet during the year, is a temporary account because it is closed directly to the owner's capital account at the end of the year.

Gain on slae of land – Nominal account

Unearned revenue – Permenant account

Cost of goods sold – Nominal Account

Retained Earning – Permenanat Account

Explanation:

The nominal accounts are almost always the income statement accounts such as the accounts for recording revenues, expenses, gains, and losses. When the income statement accounts are closed at the end of the accounting year (perhaps through an income summary account) the net amount will ultimately end up in a balance sheet equity account such as the proprietor's capital account or the corporation's retained earnings account.

The real accounts are the balance sheet accounts such as the accounts for recording assets, liabilities, and the owner's (or stockholders') equity. However, the sole proprietor's drawing account, which is reported on the balance sheet during the year, is a temporary account because it is closed directly to the owner's capital account at the end of the year.

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