Which of the following is a nominal account?

A) Retained Earnings
B) Accounts Receivable
C) Purchases Returns and Allowances
D) Accumulated Depreciation

Nominal Account

An accounting ledger account that starts each new accounting period with a zero balance and ends with a closed balance to transfer to a real account.

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that has not been distributed to shareholders as dividends.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and placed into service.