Accounts can be classified into
-
A.
cash and credit transactions -
B.
cash and credit accounts -
C.
personal and private account -
D.
personal and impersonal account
Correct Answer: Option D
Explanation
A personal account is an account for use by an individual for that person’s own needs. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
impersonal accounts: Accounts which are not held in the name of the persons or are directly related to the customers or suppliers of a business. a. Real Accounts, e.g. Asset Account; and, 2. Nominal Accounts, e.g. Income and Expenditure Accounts.