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What is a Real Account?

37. What is a Real Account?

1. An interest-bearing deposit account held at a bank or other financial institution.
2. The account that represents a country's imports and exports of goods and services.
3. The account in which accounting transactions are stored for one fiscal year.
4. An account that retains and rolls forward its ending balance at the end of the year.

Answer: D) An account that retains and rolls forward its ending balance at the end of the year

Explanation:

A real account is an account that retains and rolls forward its ending balance at the end of the year. These amounts then become the beginning balances in the next period.