[amp_mcq option1=”Nominal account” option2=”Personal account” option3=”Tangible real account” option4=”Intangible real account E. Representative personal account” correct=”option1″]<\/p>\n
The correct answer is: A. Nominal account<\/strong><\/p>\n A nominal account is a temporary account that is used to record expenses and revenues for a specific period of time. Prepaid rent is an expense that is paid in advance and will be recorded as an asset on the balance sheet until it is used up. When the prepaid rent is used up, it will be recorded as an expense on the income statement.<\/p>\n A personal account is an account that is used to record the financial transactions of an individual or a business. A tangible real account is an account that is used to record the assets of a business. An intangible real account is an account that is used to record the liabilities of a business. A representative personal account is an account that is used to record the equity of a business.<\/p>\n Here is a brief explanation of each option:<\/p>\n A. Nominal account<\/strong> B. Personal account<\/strong> C. Tangible real account<\/strong> D. Intangible real account<\/strong> E. Representative personal account<\/strong> [amp_mcq option1=”Nominal account” option2=”Personal account” option3=”Tangible real account” option4=”Intangible real account E. Representative personal account” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-44555","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n
\nA nominal account is a temporary account that is used to record expenses and revenues for a specific period of time. Prepaid rent is an expense that is paid in advance and will be recorded as an asset on the balance sheet until it is used up. When the prepaid rent is used up, it will be recorded as an expense on the income statement.<\/p>\n<\/li>\n
\nA personal account is an account that is used to record the financial transactions of an individual or a business. Prepaid rent is not a personal account because it is not related to an individual or a business.<\/p>\n<\/li>\n
\nA tangible real account is an account that is used to record the assets of a business. Prepaid rent is not a tangible real account because it is not an asset.<\/p>\n<\/li>\n
\nAn intangible real account is an account that is used to record the liabilities of a business. Prepaid rent is not an intangible real account because it is not a liability.<\/p>\n<\/li>\n
\nA representative personal account is an account that is used to record the equity of a business. Prepaid rent is not a representative personal account because it is not equity.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"