Give examples of nominal accounts and explain w... - JSS1 Business studies Ledgers Question
Give examples of nominal accounts and explain why they are closed at the end of each accounting period.
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Examples of nominal accounts include revenues, expenses, gains, and losses. Nominal accounts are closed at the end of each accounting period to reset their balances to zero and start fresh in the next period. This process ensures accurate measurement of the business's performance for each period.
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