Question

Bernard is a trainee accountant. His manager asked him to record a loss on the sale of machinery in the business’s temporary account. To which type of account was Bernard’s manager referring?

Answer 1

Answer:

Gain and loss accounts

Explanation:

Gain and loss accounts are a form of temporary accounts that are utilized to gather combined sales and purchases that has an effect on the profit or loss of business activities over a given period, which is typically in a year. For example, the loss on property sold account.

Hence, in this situation, the correct answer to the question is known to be a GAIN and LOSS ACCOUNT.