šŸ“¢ Too many exams? Don’t know which one suits you best? Book Your Free Expert šŸ‘‰ call Now!


    ⚔ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚔
    00:00:00 AM Left

    Question

    The accounting rule, "Debit all ___________, credit all

    gains & income" pertains to ____ accounts.
    A losses & expenses, real Correct Answer Incorrect Answer
    B losses & expenses, nominal Correct Answer Incorrect Answer
    C expenses & assets, real Correct Answer Incorrect Answer
    D capital & drawings, nominal Correct Answer Incorrect Answer
    E expenses and assets, nominal Correct Answer Incorrect Answer

    Solution

    The accounting general rule for recording financial transactions of nominal accounts in double-entry bookkeeping is "Debit all losses & expenses, credit all gainsĀ  &Ā  income."Ā  Ā  Nominal accounts areĀ temporary accounts, recording and keeping track of your profits, revenues, expenses, losses. Debiting lossesĀ  andĀ  expensesĀ  representsĀ  anĀ  increaseĀ  inĀ  these accounts, reflecting the use of assets or incurring of liabilities, while crediting gains and income accounts represents an increase in owners' equity through earned revenue or financial gains. This method ensures accurate and balanced financial records.

    Practice Next
    More Accounts Questions
    ask-question