Concept:Discount received is an income or gain item, so it falls under nominal accounts.
Explanation:Nominal accounts record expenses, losses, incomes, and gains.
Discount received represents an income earned by the business, usually from paying creditors early.
Income and gain accounts are temporary accounts that are closed at the end of each accounting year.
At the start of a new year, their balances become zero.
Therefore, the discount received account is not a real account or a personal account.
It is also not a profit and loss account itself, because it is transferred to the profit and loss account during closing.
Instead, it is correctly classified as a nominal account.
Answer:C. Nominal account