The correct answer is: A. a nominal account
A nominal account is an account that records expenses and revenues. It is a temporary account that is closed at the end of the accounting period.
A real account is an account that records assets, liabilities, and equity. It is a permanent account that is not closed at the end of the accounting period.
A personal account is an account that records the transactions between a business and its customers, suppliers, and employees. It is a permanent account that is not closed at the end of the accounting period.
A contract account is a type of nominal account that records the costs and revenues associated with a contract. It is a temporary account that is closed at the end of the accounting period.
Here is a brief explanation of each option:
- A. a nominal account is an account that records expenses and revenues. It is a temporary account that is closed at the end of the accounting period. Examples of nominal accounts include sales, cost of goods sold, and expenses.
- B. a real account is an account that records assets, liabilities, and equity. It is a permanent account that is not closed at the end of the accounting period. Examples of real accounts include cash, accounts receivable, and accounts payable.
- C. a personal account is an account that records the transactions between a business and its customers, suppliers, and employees. It is a permanent account that is not closed at the end of the accounting period. Examples of personal accounts include accounts receivable and accounts payable.
- D. either nominal or real account is not a correct answer because a contract account is a type of nominal account.