Real Accounts record _______?

Real accounts, also known as asset accounts, represent the tangible and intangible assets owned by a business. These accounts include cash, accounts receivable, inventory, property, plant, and equipment. They are used to record the initial cost of acquiring these assets and any subsequent increases or decreases in their value. Transactions related to creditors (amounts owed) and debtors (amounts owed to the business) are recorded in real accounts. For example, when a business purchases inventory on credit, it would record an increase in the inventory asset account and a corresponding increase in the accounts payable liability account.