Multiple choice general knowledge

The balances of personal and real accounts are shown in the:

  1. Balance sheet

  2. Profit and loss account

  3. Trading account

  4. None of the above
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A Correct answer
Explanation

Personal accounts (related to individuals, firms, or entities) and real accounts (related to assets) represent the financial position of a business. Their balances must be disclosed in the balance sheet, which shows assets, liabilities, and capital at a date.

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