CA Foundation Exam > CA Foundation Questions > Prepaid Insurance account is aa)Nominal accou...
Start Learning for Free
Prepaid Insurance account is a
- a)Nominal account
- b)Real account
- c)Representative Personal account
- d)Artificial Personal account
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Represe...
Representative Personal Accounts are accounts which represent a certain person or group of people. Accounts relating to outstanding and prepaid items are called representative personal accounts. For example, prepaid insurance, outstanding rent, outstanding wages/salaries etc.
Free Test
FREE
| Start Free Test |
Community Answer
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Represe...
Explanation:
Prepaid Insurance account is a type of Representative Personal account. Let's understand each term in detail:
1. Representative Personal account:
A Representative Personal account is a type of Personal account that represents a person or a group of persons. These accounts are used to keep track of the transactions of a particular person or group. The Prepaid Insurance account is a type of Representative Personal account because it represents the insurance company or the agent who sold the insurance policy.
2. Personal account:
A Personal account is an account used to record transactions related to individuals, firms, companies, etc. Personal accounts are divided into three categories: Natural, Artificial, and Representative. Prepaid Insurance account is a type of Personal account.
3. Nominal account:
A Nominal account is an account used to record expenses, incomes, gains, and losses. Since the Prepaid Insurance account does not fall under this category, it is not a Nominal account.
4. Real account:
A Real account is an account used to record assets, liabilities, and capital. The Prepaid Insurance account is not a Real account because it does not represent any asset, liability, or capital.
Conclusion:
Thus, Prepaid Insurance account is a type of Representative Personal account.
Prepaid Insurance account is a type of Representative Personal account. Let's understand each term in detail:
1. Representative Personal account:
A Representative Personal account is a type of Personal account that represents a person or a group of persons. These accounts are used to keep track of the transactions of a particular person or group. The Prepaid Insurance account is a type of Representative Personal account because it represents the insurance company or the agent who sold the insurance policy.
2. Personal account:
A Personal account is an account used to record transactions related to individuals, firms, companies, etc. Personal accounts are divided into three categories: Natural, Artificial, and Representative. Prepaid Insurance account is a type of Personal account.
3. Nominal account:
A Nominal account is an account used to record expenses, incomes, gains, and losses. Since the Prepaid Insurance account does not fall under this category, it is not a Nominal account.
4. Real account:
A Real account is an account used to record assets, liabilities, and capital. The Prepaid Insurance account is not a Real account because it does not represent any asset, liability, or capital.
Conclusion:
Thus, Prepaid Insurance account is a type of Representative Personal account.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer?
Question Description
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer?.
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Prepaid Insurance account is aa)Nominal accountb)Real accountc)Representative Personal accountd)Artificial Personal accountCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup