Which of the following accounts is a personal account?

Drawings account
Bank account
Prepaid Rent account
All of the above

The correct answer is A. Drawings account.

A drawings account is a personal account that is used to track the money that a business owner takes out of the business for personal use. It is a contra-equity account, which means that it is deducted from the owner’s equity in the business.

A bank account is a financial account that is held at a bank or other financial institution. It is used to store money and to make and receive payments. Bank accounts can be either personal or business accounts.

A prepaid rent account is an asset account that is used to track the amount of rent that has been paid in advance. It is a temporary account that is used to record the prepayment of rent. The amount of rent that is prepaid is recorded as a liability in the prepaid rent account. When the rent is due, the amount that is owed is transferred from the prepaid rent account to the accounts payable account.

Therefore, the only account that is a personal account is the drawings account.

Exit mobile version