NOMINAL ACCOUNT
\nˈɒmɪnə͡l ɐkˈa͡ʊnt], \nˈɒmɪnəl ɐkˈaʊnt], \n_ˈɒ_m_ɪ_n_əl ɐ_k_ˈaʊ_n_t]\
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Period-ending at near-zero balanced revenue or expense account as an owners’ equity account subdivision. A zero balance at the beginning of a new accounting period, accumulates balances during the period, and at zero at the year end by means of closing entries is the characteristic of this type of account. In contrast to balance sheet accounts known as ‘permanent accounts’ or ‘real accounts’, this is an income statement account known as a ‘temporary account’.
By Henry Campbell Black
