Question

Sales Account is Nominal Account.

• A. True
• B. False

Answer 1

The correct option is A True

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. Few examples of tangible real accounts are building, machinery, stock, land, etc.

Intangible real accounts are related to things that can't be touched and felt physically. Few examples of such real accounts are goodwill, patents, trademarks, etc.

Golden rule for real accounts: Debit what comes in; Credit what goes out.

Purchases A/C and Sales A/C are real accounts because goods is a thing of value.