The real accounts are accounts of Assets, liabilities and ___________?
Correct answer: C. Capital
- A. Expenses
- B. Revenues
- C. Capital
- D. Drawing
Explanation
In the broad balance-sheet classification used in basic accounting, real accounts include assets, liabilities, and capital, all of which carry forward to the next period. Expenses and revenues are nominal accounts because they are closed at year-end.
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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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