Accounts Online Quiz Help
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Accounts are the financial records of an organization that keeps records of all the financial transactions of a business. These records enable anyone to accurately estimate the current financial position of an organization. Annual accounts of a firm consist of two main parts given by Accounts Online Quiz Help are- Balance sheet and Income Statement (profit and loss account). The annual accounts of a registered organization is has to be approved by an external auditor and are required by law to disclose certain information.
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Types of accounts
Types of accounts given by Accounts Online Quiz Help are
• Real Accounts- All the tangible and intangible assets of a firm fall under the category of real accounts. Tangible real accounts consists if goods that can be physically felt and touched. For example land, machinery, stock etc. Intangible real accounts consist of things that cannot be physically touched and felt. For example patents, trademarks, Goodwill etc. The golden rule for real account given by Accounts Online Quiz Help is – “Debit what come in, credit what goes out”.
• Nominal Accounts- Nominal Accounts are related to income, expense, loses or gains. It does not have any physical form but there is involvement of money. For example- Salary A/C, Sales A/C, Purchase A/C etc. Golden rule for nominal Account given by Accounts Online Quiz Help is- “Debit all expenses and losses, Credit all income and gains.”
• Personal Accounts- These accounts are related to individual, companies etc. For example debtor, creditor, banks etc
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