Difference between Nominal and Real accounts in Financial Accounting

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=fCqWpAzFHHU

This video shows the difference between nominal and real accounts in financial accounting. Nominal accounts consist of revenues, expenses, and dividends. These accounts are also known as temporary accounts because they are only tracked for a single year, and then are zeroed out during the year-end closing process. This means that at the end of the fiscal year, the balances of these accounts are transferred to the real (aka permanent) account called Retained Earnings. Retained Earnings, like all balance sheet accounts (assets, liabilities, and stockholders' equity), is a permanent account. Real/permanent accounts include the effect of all transactions since the inception of the firm. The cash account, for example, is a permanent/real account that tracks the cumulative effect of all cash transactions since the firm was created. This is different from nominal/temporary accounts, which only track revenues/expenses/dividends for a single period and then set the accounts back to a zero balance to begin a new fiscal year. • Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com • To like us on Facebook, visit / edspira • Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com • To follow Michael on Facebook, visit • / prof.michael.mclaughlin • To follow Michael on Twitter, visit • / prof_mclaughlin • This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.— • Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. • — • SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • • A 44-PAGE GUIDE TO U.S. TAXATION • • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • • MANY MORE FREE PDF GUIDES AND SPREADSHEETS • http://eepurl.com/dIaa5z • — • SUPPORT EDSPIRA ON PATREON • * / prof_mclaughlin • — • GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT • https://edspira.thinkific.com • — • LISTEN TO THE SCHEME PODCAST • Apple Podcasts: https://podcasts.apple.com/us/podcast... • Spotify: https://open.spotify.com/show/4WaNTqV... • Website: https://www.edspira.com/podcast-2/ • — • GET TAX TIPS ON TIKTOK • / prof_mclaughlin • — • ACCESS INDEX OF VIDEOS • https://www.edspira.com/index • — • CONNECT WITH EDSPIRA • Facebook: / edspira • Instagram: / edspiradotcom • LinkedIn: / edspira • — • CONNECT WITH MICHAEL • Twitter: / prof_mclaughlin • LinkedIn: / prof-michael-mclaughlin • — • ABOUT EDSPIRA AND ITS CREATOR • https://www.edspira.com/about/ • https://michaelmclaughlin.com

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