Question

Accounts which relates to assets tangible or intangible are called ________ .

• A. Personal a/c
• B. Real a/c
• C. Nominal a/c
• D. Impersonal a/c

Answer 1

The correct option is B Real a/c

There are mainly three types of accounts: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural and Representative. All assets of a firm, which are tangible or intangible, fall under the category "Real Accounts". Tangible real accounts are related to things that can b touched and felt physically, e.g., building, machinery, stock, land, etc. Intangible real accounts are related to things that can't be touched and felt physically, e.g., goodwill, patents, trademarks, etc.