The T-Account Approach

question 78

Multiple Choice

The T-account approach:

• A)may be used with the direct method.
• B)creates one big T-account for cash that replaces separate schedules to show all the changes in the cash account.
• C)shows cash provided as credits and cash used as debits.
• D)does not determine the change in each balance sheet account.

---

Definitions:

Euros

The official currency of 19 out of 27 European Union countries, which is also used in some non-EU countries.

Pounds

A unit of weight commonly used in the United States and British imperial system, equivalent to 0.453592 kilograms, or a unit of currency in the United Kingdom and some other countries.

Exchange Rate

An exchange rate is the value of one currency for the purpose of conversion to another currency.

Rupees

The official currency of India, also used as currency in other South Asian countries, identifiable by the symbol ₹.