Vidyalelo
Commerce · Q101

Accounting

Graduate and Post Graduate · Commerce · question 101

Q101

The real accounts are accounts of Assets, Liabilities and

A.
Expenses
B.
Revenues
C.
Capital
Answer
D.
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).