Office equipments account is classified as _________ account?
Correct answer: B. Real
- A. Nominal
- B. Real
- C. Cash
- D. Capital
Explanation
Office equipment represents a tangible business asset, so its account is a real account. Nominal accounts are reserved for revenues, expenses, gains and losses.
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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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