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:

Principal Debtor

The primary individual or entity responsible for fulfilling the obligations of a debt or loan agreement.

Surety

A financial arrangement where a third party (surety) agrees to assume responsibility for the debt or obligation of another party if that party fails to meet their obligations.

Consideration

The value (such as money, services, or goods) promised in a contract which motivates a party to enter into the agreement.

Article 9

A provision of the Uniform Commercial Code that governs secured transactions involving personal property.