Many people in the business world are unfamiliar with the term “Nominal Account.” This account is one of many types of accounting records that records items such as costs and sales. Other types of accounts include cash, bank, payroll, wages, and salaries expenses.
They are used to keep track of revenues and expenses and can determine a company’s profitability. We also know the nominal account as an income account. It records the monetary amount of sales and costs associated with the sale. This type of accounting records transactions that represent money changing hands.