From the List of Accounts Below, Determine Whether the Account

question 18

Multiple Choice

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Unearned Revenue

• A) nominal account
• B) real account

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.

Depreciation Estimates

Projections or calculations made regarding the decrease in value of tangible assets over time due to use, wear, or obsolescence.

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life.

Fixed Assets

Fixed assets are long-term tangible assets intended for use in the production or supply of goods or services, not easily converted to cash within a year.