Building account is classified as _________ account?
Correct answer: D. Real
- A. Nominal
- B. Capital
- C. Cash
- D. Real
Explanation
A building is a tangible fixed asset owned by the business, so the building account is classified as a real account. It is not a nominal, cash or capital account.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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