When Creating a Personal Balance Sheet,which of the Following Is

question 74

Multiple Choice

When creating a personal balance sheet,which of the following is an investment asset?

• A) Cash value of life insurance
• B) Checking account
• C) Possessions in your home
• D) Retirement account
• E) Vacation property

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Definitions:

Depreciation

The methodical distribution of a physical asset's cost across its lifespan, mirroring its depreciation over time.

Supplies

Items and materials used in the daily operations of a business, often consumable and regularly replaced.

Prepaid Rent

An expense recorded before it is used, representing payment for rent that covers a future period, considered an asset on the balance sheet until the period to which it applies passes.

Salaries and Wages Expense

The total expense for a company from paying salaries and wages to its employees during a financial period, reflecting the cost of labor.