Multiple Choice
Which type of accountant typically holds titles such as controller, tax accountant, and internal auditor?
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1. Introduction to Accounting
Types of Accounting
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Which of the following is a real (permanent) account?
A
Cash
B
Service Revenue
C
Dividends
D
Rent Expense
Verified step by step guidance1
Understand the difference between real (permanent) accounts and nominal (temporary) accounts. Real accounts are balance sheet accounts that carry their balances forward into the next accounting period, while nominal accounts are income statement accounts that are closed at the end of the accounting period.
Identify the type of account for each option provided: Cash, Service Revenue, Dividends, and Rent Expense.
Classify Cash as a real account because it is an asset account found on the balance sheet and its balance is carried forward to the next period.
Classify Service Revenue, Dividends, and Rent Expense as nominal accounts because they are temporary accounts. Service Revenue is an income statement account, Dividends are closed to Retained Earnings, and Rent Expense is an expense account that is closed at the end of the period.
Conclude that the correct answer is Cash, as it is the only real (permanent) account among the options provided.
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