Multiple choice

Which of the following statements is/are true?

(i) Drawings account is a nominal account. (ii) Capital account is a real account. (iii) Sales account is a nominal account. (iv) Outstanding salaries account is a nominal account. (v) Patents account is a personal account.

  1. Only (i)

  2. Only (iii)

  3. Both (ii) and (iv)

  4. (ii), (iv) and (v)

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Purchases and Sales can be treated as either nominal accounts or real accounts. GOLDEN RULE: "Debit all expenses and losses; Credit all incomes and gains."

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