Which of the following accounts can be classified as a real account?
Correct answer: D. Cash account Accounting & Auditing
- A. Rent expenses account
- B. Rent income account
- C. insurance expenses account
- D. Cash account Accounting & Auditing
Explanation
Cash is a real account because it represents a tangible asset owned by the business. Rent and insurance expenses are nominal accounts, while their related income account is also nominal.
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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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