What are real accounts?
Understand the Problem
The question is asking about real accounts, which are a concept in accounting that refers to assets and other resources that have a physical existence, as opposed to nominal accounts that deal with income, expenses, and other financial transactions.
Answer
A real account retains its balance and remains open at the end of the accounting period.
A real account is a general ledger account that retains its balance and remains open at the end of the accounting period or year.
Answer for screen readers
A real account is a general ledger account that retains its balance and remains open at the end of the accounting period or year.
More Information
Real accounts include assets, liabilities, and equity accounts that do not reset at the end of an accounting period. They are also known as permanent accounts.
Tips
Real accounts should not be confused with nominal (temporary) accounts, which reset at the end of each accounting period.
Sources
- Real Accounts in Accounting: Types & Examples - GeeksforGeeks - geeksforgeeks.org
- What is a real account? | AccountingCoach - accountingcoach.com
- Nominal vs. Real Account | Definition & Examples - Study.com - study.com
