The Bank Will Show a Customer's Withdrawal as A

question 75

Multiple Choice

The bank will show a customer's withdrawal as a:

• A)debit,because cash is an asset.
• B)credit,because a withdrawal increases its liability from the bank's point of view.
• C)debit,because a withdrawal decreases its liability from the bank's point of view.
• D)credit,because cash is an asset.

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Definitions:

Market Value

The ongoing value at which one can buy or sell a service or asset in the market.

Nonmonetary Assets

Assets that cannot be readily converted into cash, such as property, equipment, and patents.

Successful-efforts Method

An accounting method used in the oil and gas industry focusing on capitalizing the cost of successful projects and expensing those of unsuccessful ones.

Full-cost Method

An accounting method where all direct and indirect costs of producing an asset are capitalized or included in its cost base.