T-Accounts Aid in Separating

question 113

Multiple Choice

T-accounts aid in separating:

• A)increases and decreases in an account.
• B)the equality of the credits.
• C)the equality of debits and credits in the accounting equation.
• D)the balances of all of the accounts.

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Definitions:

Tax Avoidance

A legal strategy used by individuals and businesses to minimize taxes owed by using deductions, credits, and exemptions within the law.

Bargain Purchase Option

A provision in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

CRA

Canadian Revenue Agency, an agency that administers tax laws for the Canadian government and for most provinces and territories, or Community Reinvestment Act, a U.S. federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities.