What is the 3 type of account?
Personal, real, and nominal accounts are the three types of accounts in accounting. In the first case, personal accounts deal with persons and entities primarily; real accounts show property and liabilities of a business; and lastly, nominal accounts record events about income, expenses, gains, and losses. Account titles identify specific elements of accounting used in the recording process, including assets, liabilities, owner’s equity, revenue, and expenses. Assets include cash, accounts receivable, inventory, and property. Liabilities include accounts payable, notes payable, and loans payable.You can classify accounts into three main categories: personal, real, and nominal. These categories depend on the nature and characteristics of the items or categories they represent. Let us understand each type of account in detail.