Multiple choice

Free samples account is

  1. personal A/c

  2. real A/c

  3. nominal A/c

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Free samples account is used to record the cost of free samples distributed for advertising/promotion purposes. Since it records an expense (advertising expense), it's a nominal account (temporary account that gets closed at period end). It's not a personal account (not for people) or real account (not for permanent assets). Option D is unnecessary.

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