nominal accounts

Nominal Account

A business account in which the balance is closed out after the end of the fiscal year. See also: Real account.

Temporary Account

An account whose balance is quickly reduced to zero after its creation by a company. For example, a company may create a temporary account for dividends after they are announced but before they are distributed. After distribution, the temporary account goes to zero. A temporary account is also called a nominal account.

nominal accounts

records of items of income received by a business, such as rents from properties, or of expenses incurred, such as rates paid. This LEDGER information is summarized periodically in the PROFIT-AND-LOSS ACCOUNT. Contrast with REAL ACCOUNTS.
References in periodicals archive ?
Members typically have no say at all in how their nominal accounts are invested.
Interest is credited on an employee's nominal account at a fixed rate (or may be based on an index rate or other variable rate).
Some plans offer partial lump:-sum distributions Disability and Provided based on plan formula Preretirement Death Benefits Postemployment Often the plan provides COLA a COLA Defined Contribution Plan Basis of Benefit Account balance based on employer and employee contributions plus actual investment eaminAs Benefit Lump-sum payment, with ability Distribution to rollover to other qualified retirement ,Ians Disability and Provided as a lump-sum Preretirement distribution of the individual's Death Benefits account balance Postemployment Not offered COLA Cash Balance Plan Basis of Benefit Nominal account balance based on employee contributions and employer pay credits plus credited interest Benefit Lifetime annuity with optional Distribution forms of payment.