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What is a nominal account?

36. What is a nominal account?

1. An interest-bearing deposit account held at a bank or other financial institution.
2. The account that represents a country's imports and exports of goods and services.
3. The account in which accounting transactions are stored for one fiscal year.
4. None of the above

Answer: C) The account in which accounting transactions are stored for one fiscal year

Explanation:

Nominal accounts are used to collect accounting transaction information for revenue, expense, gain, and loss transactions, all of which appear in the income statement.