A T Account Is

question 12

Multiple Choice

A T account is

• A)a way of illustrating the basic form of an account.
• B)a special account used to record only debits.
• C)a special account used to record only credits.
• D)the actual account form used in real accounting systems.

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Definitions:

Goodwill

The intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets, representing reputation, brand, and other non-physical values.

Journal Entries

These are records of financial transactions in the accounting system, made in chronological order.

Consolidated Financial Statements

Financial statements that aggregate all assets, liabilities, and operating activities of a parent company and its subsidiaries.

Book Value

The net value of an asset or liability recorded in the financial statements, often equal to its cost minus accumulated depreciation or amortization.