Which of the Following Is NOT a Formal Part of the Accounting

question 8

Multiple Choice

Which of the following is NOT a formal part of the accounting system?

• A) balance sheet
• B) income statement
• C) statement of owner's equity
• D) the work sheet

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Definitions:

Fixed Assets

Enduring assets with physical presence utilized in business activities, not foreseen to be liquidated or changed to cash within twelve months.

Depreciable Cost

The difference between a fixed asset’s initial cost and its residual value.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate; it applies this rate to the book value of the asset at the beginning of each year.