Discount received account is a?

A. Real account
B. Personal account
C. Nominal account
D. Profit and loss account

Correct Answer: Option C

C. Nominal account

Explanation

In accounting, nominal accounts are the general ledger accounts that are closed at the end of each accounting year. As a result, the nominal accounts are also referred to as temporary accounts. The closing process also means that each nominal account will start the next accounting year with a zero balance. Nominal Accounts are accounts related and associated to losses, expenses, income or gains. Examples include purchase account, sales account, salary A/C, commission A/C, etc.