An accounting transaction with an individual human being is termed as a ______________.
A
Artificial or legal person's account
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B
Natural person's personal account
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C
Representative personal account
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D
Any of the above
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Solution
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.