Question

Real accounts can be further classified into _____________.

• A. Tangilble
• B. Intangible
• C. (A) or (B)
• D. None of above

Answer 1

Answer: (C)

(A) or (B)

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 be touched and felt physically.

Intangible real accounts are related to things that can't be touched and felt physically.

The golden rule of real accounts is: Debit what comes in; Credit what goes out.