Accounting MascotAccounting Q&A

What does nominal expense mean?
submitted by Fathe Singh

Youseff

You're probably referring to nominal accounts. A nominal account is a temporary account, meaning it will be closed at the end of the fiscal year. The money will be transferred to a permanent account, i.e. owner's equity, and there will be a $0 balance in all nominal accounts.
This makes housekeeping a little tidier.

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