Now we expand the picture to take in the full accounting, Finance Basics

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Now we expand the picture to take in the full accounting

Question: Now we expand the picture to take in the full "accounting cycle" which culminates in closing the books and producing financial statements. Discuss the difference between "nominal" and "real" accounts.

Why are they so called? What type of information is contained in nominal accounts, and what type in real accounts? Which financial statement contains the information from nominal accounts, and which contains the information from real accounts?

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Finance Basics: Now we expand the picture to take in the full accounting

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