Is Cash / Bank A Real Or Nominal Account Or Personal Account
Cash / Bank Is What Kind Of Account In Accounting? Cash or Bank is a Real or Property Account as it is t h e rig ht or resource of the b usi ness used to operate, finance and invest t he b usi ness. Moreover, cas h is co nsidered as Tangib le Asset wh ic h is used to exc ha nge goods or services b etwee n two or more parties in a b usi ness transaction. It is s how n on t h e b ala nce s heet as a curre nt asset. It is not closed for t he period u nless t he b usi ness is liquidated so it is a permanent account and not a nominal account w hich is related to a temporary accou nt. For example, cas h i nvested into t he b usi ness to grow it or finance it or to operate it to meet daily running expenses and he nce a result it would provide prob a b le future eco nomic b e nefits to t he b usi ness in t he form of sales or reve nues ear ned or ru nning and stab ility of b usi ness’s projects successfully. However, cash is not considered as a personal account as it ...