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Extra info for 1,001 Accounting Practice Problems For Dummies
Which of the following describes nominal accounts? They show balances at a point in time. They’re reported on the income statement. They’re used to determine the total assets of a business. They’re reported on the balance sheet. They’re permanent accounts. 163. Why are certain accounts closed at the end of the year? 164. Which of the following accounts is a nominal account? accounts receivable inventory allowance for bad debt prepaid insurance rent expense 165. Which of the following is an example of a nominal account?
156. What account does a business need in its chart of accounts to record expenses for renting its warehouse space? 157. What accounts does a business need in its chart of accounts to record sales to customers on account? 158. What accounts does a business need in its chart of accounts to record the receipt of cash for products to be delivered in the future? Identifying Nominal versus Real Accounts 159–168 159. Which of the following accounts are real accounts (also known as permanent accounts)?
What are the two sources of capital? 268. On January 1, Cliche Beret Co. borrows $2,000,000 to pay for a new manufacturing facility. The loan requires annual payments of $200,000 plus 10% interest on the unpaid balance. How is this transaction represented on the financial statements on January 1? 269. Go Go Golf Corporation has had a very good year and decides to distribute some profits to the owners of the corporation. What journal entry will the company make when it distributes $250,000 to the stockholders?