JAMB UTME - Principles of Accounts - 2011

Question 1 Report

A typical example of a real account is?

prepayment

expenses

plant Correct answer

income

Answer Details

A typical example of a real account is a plant account. A real account is a type of account in accounting that deals with assets and liabilities that have a physical existence, such as buildings, equipment, and inventory. A plant account, which represents the cost of a company's machinery and equipment, is an example of a real account because it is a physical asset with a real value. Other examples of real accounts include land, vehicles, buildings, and inventory. In contrast, nominal accounts deal with revenue, expenses, and gains or losses, while personal accounts represent individuals and entities that a business interacts with.






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