Question

State with reasons whether the following statement is true or false.
Patent Right is in the of nature of Real Accounts.

• A. True
• B. False

Answer 1

The correct option is A True

Patent right is classified as intangible asset and appear on balance sheet, that is why it is of nature of real account. The balances of real accounts are not cancelled out at the end of an accounting period but are carried over to the next period.