Question

An accounting transaction with an individual human being is termed as a ______________.

• A. Artificial or legal person's account
• B. Natural person's personal account
• C. Representative personal account
• D. Any of the above

Answer 1

The correct option is B Natural person's personal account

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of three types: Natural, Artificial and Representative personal accounts.

An account recording transactions with an individual is termed as a natural person's personal account.

For e.g., Kamal's accounts, Mala's account, Sharma's account.