Explanation:

A real account is a general ledger account that does not close at the end of the accounting year. In other words, the balances in the real accounts are carried over to become the beginning balances of the next accounting period. Real accounts are also referred to as permanent accounts.

Examples of Real Accounts

The real accounts are the balance sheet accounts which include the following:

• Asset accounts (cash, accounts receivable, buildings, etc.)
• Liability accounts (notes payable, accounts payable, wages payable, etc.)
• Stockholders' equity accounts (common stock, retained earnings, etc.)