You Have Written a SavingsAccount Class Based on the BankAccount

question 16

Essay

You have written a SavingsAccount class based on the BankAccount class in the textbook. You wish to instantiate a SavingsAccount object with a starting balance of $2,175.25. Theorize why you would need to provide an overloaded constructor for the SavingsAccount class.

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Definitions:

Decreasing Expense

Expenses that diminish over time, typically due to cost-cutting measures, operational efficiencies, or depreciation methods.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped to generate, ensuring financial statements accurately reflect business activities.

Asset Valuation Principle

A principle in finance that entails estimating the current worth of an entity's assets, considering market value, use value, and other factors.

Historical Cost Principle

A fundamental accounting rule stating that assets must be logged and presented at the cost they were originally bought for.