The account which is never closed is called: MCQ with Answer and Explanation

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The account which is never closed is called:

A. Personal Account

B. Real Account

C. Nominal Account

D. Outstanding Account

Answer: Option B

Solution (By JKSSB Mock Tests)

Real accounts represent assets and properties. They are permanent accounts and their balances are carried forward to the next year, never closed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Integrated Reporting' framework is developed by:

A. IFRS Foundation

B. ICAI

C. International Integrated Reporting Council (IIRC)

D. FASB

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Correct Answer: Option C

Explanation:
IIRC (now part of IFRS Foundation) developed the International Framework.

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Question #2

Under-casting of a Sales book by Rs 1,000 will result in:

A. Debit column of Trial Balance being short by Rs 1,000

B. Credit column of Trial Balance being short by Rs 1,000

C. No effect on the Trial Balance totals

D. Suspense account with a debit balance

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Correct Answer: Option B

Explanation:
Sales have a credit balance. If it's under-casted, the total credit postings will be Rs 1,000 less, making the credit column short.

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Question #3

In a single entry system, which accounts are usually maintained?

A. All personal and real accounts

B. All three types of accounts

C. Only personal accounts and cash book

D. Only real and nominal accounts

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Correct Answer: Option C

Explanation:
The single entry system is incomplete; typically, only personal accounts (debtors/creditors) and the cash book are fully maintained.

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