Which of the following is a real account?
Correct answer: A. Office equipment
- A. Office equipment
- B. Rent expenses
- C. Rent income
- D. Insurance expense
Explanation
Office equipment is a tangible asset, so it is classified as a real account. Rent income and rent or insurance expenses are nominal accounts because they relate to income or expenditure for the period.
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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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