Q101
The real accounts are accounts of Assets, Liabilities and
A.
Expenses
B.
Revenues
C.
Capital
AnswerD.
Drawing
Answer: Option C
Solution
Answer: Option C
Solution:
The real accounts are accounts of Assets, Liabilities and Capital. The accounting formula essentially shows that what the firm owns (its assets) is purchased by either what it owes (its liabilities) or by what its owners invest (its shareholders equity or capital).