Which of the Following Accounts Is a Real Account

question 156

Multiple Choice

Which of the following accounts is a real account?

• A)Building
• B)Depreciation Expense-Buildings
• C)Interest Expense
• D)Service Revenue

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Definitions:

Direct Method

A cost allocation method that assigns all costs directly to cost objects without going through intermediate cost pools.

Prepaid Expense

Payments made in advance for goods or services that will be received in the future.

Direct Method

A method for preparing a cash flow statement where cash receipts and payments are reported directly, without using adjustments for non-cash items.

Selling Expense

Costs incurred to sell a product, including advertising, sales commissions, and other expenses directly related to the sales process.