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Which of the following is classified as a real account?Question 6Answera.Dividendsb.Commission paidc.Interest receivedd.Cash

Question

Which of the following is classified as a real account?Question 6Answera.Dividendsb.Commission paidc.Interest receivedd.Cash

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Solution

The answer is d. Cash.

Real accounts are those that relate to properties or assets of a business, and cash is a tangible asset that a business owns. Therefore, it is classified as a real account.

Here's a step-by-step explanation:

  1. Understand the question: The question is asking which of the given options is classified as a real account.

  2. Define Real Account: Real accounts are those that relate to properties or assets of a business. They are called real accounts because they can be physically touched, seen, and felt.

  3. Evaluate the options:

    a. Dividends: These are not real accounts. They are distribution of profits by a corporation to its shareholders.

    b. Commission paid: This is an expense, not a real account.

    c. Interest received: This is an income, not a real account.

    d. Cash: This is a real account. It is a tangible asset that a business owns.

  4. Choose the correct option: From the evaluation, we can see that Cash (option d) is the only real account in the options given. Therefore, the answer is d. Cash.

This problem has been solved

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