181. What is the primary characteristic of a Nominal Account in accounting?
A. Ignoring Changes in Equity
B. Represents Revenue, Expenses, Losses, and Gains
C. Detailing Long-Term Liabilities
D. Focusing Only on Short-Term Assets
182. How does a Nominal Account contribute to the determination of the net income or net loss of a business?
A. Setting Advertising Budgets
B. Aggregates Revenue and Expenses to Calculate the Overall Profitability
C. Assessing Market Trends
D. Ignoring Non-Cash Transactions
183. What types of transactions affect Nominal Accounts?
A. Analyzing Employee Performance
B. Transactions Involving Revenue, Expenses, Gains, and Losses
C. Focusing Only on Short-Term Liabilities
D. Ignoring Changes in Cash Position
184. How does the closing process in accounting relate to Nominal Accounts?
A. Detailing Long-Term Investments
B. Involves Transferring Balances of Revenue and Expense Accounts to the Income Summary or Retained Earnings
C. Ignoring Non-Monetary Transactions
D. Setting Advertising Budgets
185. What role does the Income Summary account play in the closing entries of Nominal Accounts?
A. Assessing Market Demand
B. Serves as a Temporary Account Used to Summarize Revenue and Expense Balances
C. Ignoring Changes in Equity
D. Focusing Only on Short-Term Assets
186. How do gains and losses contribute to the classification of transactions in Nominal Accounts?
A. Setting Advertising Budgets
B. Gains and Losses Represent Positive or Negative Financial Outcomes and Affect Net Income
C. Analyzing Market Share
D. Ignoring Non-Cash Transactions
187. What is the purpose of recording revenue in Nominal Accounts?
A. Ignoring Changes in Cash Position
B. Captures Income Earned from Business Operations
C. Detailing Changes in Equity
D. Focusing Only on Short-Term Liabilities
188. How does the recognition of expenses in Nominal Accounts impact the calculation of net income?
A. Assessing Employee Performance
B. Reduces the Overall Profitability by Accounting for Costs Incurred in Business Operations
C. Ignoring Non-Monetary Transactions
D. Analyzing Market Trends
189. What is the treatment of closing entries for revenue accounts in Nominal Accounts?
A. Detailing Long-Term Liabilities
B. Transfers Credit Balances of Revenue Accounts to the Income Summary or Retained Earnings
C. Setting Advertising Budgets
D. Focusing Only on Short-Term Assets
190. How do losses contribute to the classification of transactions in Nominal Accounts?
A. Assessing Market Demand
B. Losses Represent Negative Financial Outcomes and Impact Net Income
C. Ignoring Changes in Equity
D. Analyzing Employee Performance
Admin