The correct answer is: B. Real Account
A patent right is an intangible asset that gives its owner the exclusive right to make, use, sell, or offer for sale an invention for a limited period of time. Patent rights are typically recorded in a company’s balance sheet as a real account.
A real account is an account that represents an asset or liability of a company. Real accounts are permanent accounts, which means that they are not closed at the end of each accounting period. The balance of a real account is carried forward to the next accounting period.
Personal accounts and nominal accounts are temporary accounts. Personal accounts represent the financial effects of transactions with other entities, such as customers, suppliers, and employees. Nominal accounts represent the financial effects of revenue and expense transactions. Temporary accounts are closed at the end of each accounting period, and their balances are transferred to the retained earnings account.
Therefore, a patent rights account is a real account because it represents an asset of a company.