Commerce Exam > Commerce Questions > Rent account.a)Personalb)Realc)Nominald)None ...
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Rent account.
- a)Personal
- b)Real
- c)Nominal
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
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Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answe...
These accounts are also known as fictitious accounts as they do not represent any tangible asset. A separate account is maintained for each head or expense or loss and gain or income. Rent account is a nominal account. ... The rule for nominal accounts is: Debit all expenses and losses; Credit all incomes and gains.
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Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answe...
Explanation:
Rent account is a Nominal account
- Nominal account: Rent account is categorized as a nominal account because it represents expenses incurred by the business. Nominal accounts are temporary accounts that are closed at the end of each accounting period.
- Personal account: Personal accounts represent individuals, companies, or organizations with whom the business has a relationship. Rent account does not fall under this category as it is not related to a specific person or entity.
- Real account: Real accounts represent tangible assets, liabilities, or equity. Rent account does not fall under this category as it represents an expense incurred by the business for using a property or space.
- None of the above: Since Rent account falls under the category of Nominal account, option C is the correct answer.
In conclusion, Rent account is classified as a Nominal account in the accounting system due to its nature as an expense incurred by the business.
Rent account is a Nominal account
- Nominal account: Rent account is categorized as a nominal account because it represents expenses incurred by the business. Nominal accounts are temporary accounts that are closed at the end of each accounting period.
- Personal account: Personal accounts represent individuals, companies, or organizations with whom the business has a relationship. Rent account does not fall under this category as it is not related to a specific person or entity.
- Real account: Real accounts represent tangible assets, liabilities, or equity. Rent account does not fall under this category as it represents an expense incurred by the business for using a property or space.
- None of the above: Since Rent account falls under the category of Nominal account, option C is the correct answer.
In conclusion, Rent account is classified as a Nominal account in the accounting system due to its nature as an expense incurred by the business.
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Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rent account.a)Personalb)Realc)Nominald)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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