Question

Fixed Deposit Account is _________.

• A. Real
• B. Personal
• C. Nominal
• D. All of the above

Answer 1

The correct option is A Real

Accounts relating to properties or assets are known as "Real Accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts are further classified into tangible and intangible.

1. Tangible real accounts: These accounts represents assets and properties which can be seen, touched, felt, measured, purchased and sold. For e.g. Machinery account, Cash account, Furniture account, Stock account, etc.

2. Intangible real accounts: These accounts represent assets and properties which cannot be seen, touched or felt. For e.g. Goodwill accounts, Patents accounts, Trademarks accounts, etc.

Fixed Deposit account is an asset of the business. Hence, it is classified as a real account.