PRC-1 · Chapter 3 · Question 82 of 100
At the end of an accounting period, which of the following groups of accounts are 'closed off' (zeroed out) and NOT carried forward to the next period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Income and Expenses
Explanation
Nominal accounts (income and expenses) only relate to a specific financial year. At year-end, they are closed to the statement of profit or loss to calculate net profit, and their balances restart at zero.
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