Question

Which of the following is a real (permanent) account?

• A. Goodwill
• B. Sales
• C. Accounts Receivable
• D. Both Goodwill and Accounts Receivable

Answer 1

The correct option is D Both Goodwill and Accounts Receivable

Accounts of things are called real accounts. For each of the thing, a separate account is opened in the ledger. The balances of real account are carries over to the next period. Goodwill is a intangible fixed assets and accounts receivable are current assets. Both are real accounts.