The real accounts are the accounts of assets, liabilities and ________
Right Answer is: A
• The three major elements of accounting are assets, liabilities, and capital. The accounting equation offers us a simple way to understand how these three entities are related to each other.
Assets = Capital + Liabilities
• The accounting equation shows on a firm’s balance sheet whereby the total of all the firm’s assets equals the sum of the company’s liabilities and shareholders’ equity.