Which Statement About an Account Is True

question 100

Multiple Choice

Which statement about an account is true?

• A)In its simplest form, an account consists of two parts.
• B)An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items.
• C)There are separate account for specific assets and liabilities but only one account for stockholders' equity items.
• D)The left side of an account is the credit or decrease side.

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Definitions:

Deposited

The act of placing money into a financial institution or account for safekeeping or to earn interest.

Present Amount

The present value of an anticipated amount of money or series of cash flows, assessed by a predetermined rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Received

Pertains to the act of acquiring or getting something from another party.