nominal account definition

nominal account

Revenue or expense account that is a subdivision of the owners' equity account, and which is closed to a zero balance at the end of each accounting period. It starts with a zero balance at the beginning of a new accounting period, accumulates balances during the period, and returns to zero at the year end by means of closing entries. Nominal accounts are income statement accounts and are also called 'temporary accounts' in contrast to balance sheet (asset, liability, and owners' equity) accounts which are called 'permanent accounts' or 'real accounts.'

nominal account is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

nominal account appears in the definitions of the following terms: real accounts and temporary account

This content can be found on the following page:

http://www.businessdictionary.com/definition/nominal-account.html