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