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Define real account

A real account is known to be an account which can be a part of company’s book once it is opened. Such account would be available from the first day of business to its last day. Most of this account will reflect balance sheet of company. Real account homework help will make you knowledgeable about its importance and the need of real account. The balance sheet is basically known to be a financial statement which would list down accounts that a company has in its balance.

Real account- assets involved

When it comes to real accounts, there are two different assets included:

  1. Tangible real accounts: The tangible assets are known to be something that can be measured, touched, felt, purchased and sold. For instance, building, cash accounts, land, stocks etc.
  2. Intangible real accounts: These assets do not have any physical existence but can easily measure through monetary terms. Examples sighted, patent right, goodwill, trademarks etc.

Real accounts homework help will make you aware that it showcases liabilities, assets as well as owner’s equity. Accounts payable, notes payable, accounts receivable, cash etc are all sighted into real accounts and this are visible in balance sheets.

Golden rules of real accounts

Real accounts would include:

  • Contra liability
  • Contra equity accounts
  • Contra asset

Such accounts would also retain balances beyond any current fiscal year. Two golden rules of real accounts are:

  1. Debit is what comes in
  2. Credit that goes out

Real accounts assignment help would allow you to understand that account would not show up on balance sheet. Accounting is a difficult subject and so proper explanations to problems and concepts are very essential. In case account is having a zero balance, then it is not necessary to report on balance sheet.

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