Nominal transaction

What is a nominal transaction please?

A nominal transaction is a record of an accounting entry in a nominal account, which is a temporary account used to track revenues, expenses, and other income over a specific period, such as a fiscal year. These transactions are used to compile financial reports and are distinct from real accounts (like assets and liabilities), which are permanent accounts that carry balances forward. Examples include sales, purchases, and various operating costs.

Hello @Jam11

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