A T-Account Is

question 202

Multiple Choice

A T-account is

• A) a way of depicting the basic form of an account.
• B) what the computer uses to organize bytes of information.
• C) a special account used instead of a trial balance.
• D) used for accounts that have both a debit and credit balance.

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Definitions:

Proprietorship

A business entity that is owned and run by one individual where there is no legal distinction between the owner and the business.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicative of the company's profitability.

Net Profit

The amount of money that remains from revenues after all operating expenses, taxes, and costs have been subtracted.