Which of the following is a real (permanent) account?
A)Goodwill
B)Sales
C)Accounts Receivable
D)Both Goodwill and Accounts Receivable

Question

Quizplus · Accepted Answer

Goodwill and Accounts Receivable are both examples of real (permanent) accounts. Real accounts represent assets, liabilities, and owner's equity and their balances are carried forward to the next accounting period. Goodwill represents the value of a company's reputation, brand name, customer base, etc. and is recorded as an intangible asset on the balance sheet. Accounts Receivable represents the amount of money owed to the company by its customers and is recorded as an asset on the balance sheet. Sales is an example of a nominal (temporary) account, which represents revenue and expenses that are closed out at the end of each accounting period.

Which of the Following Is a Real (Permanent) Account