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    Question

    Which of the following is a real (or permanent)

    account?
    A Rent Expense Correct Answer Incorrect Answer
    B Sales Revenue Correct Answer Incorrect Answer
    C Accounts Payable Correct Answer Incorrect Answer
    D Dividend Paid Correct Answer Incorrect Answer

    Solution

    Real accounts are balance sheet accounts (Asset, Liability, Equity) that are not closed at the end of the accounting period; their balances are carried forward. Accounts Payable is a liability account. Nominal accounts (A, B, D) are income statement accounts (Revenue, Expense, Gain, Loss) that are closed to retained earnings at period-end.

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