Which of the Following Statements Is True

question 19

Multiple Choice

Which of the following statements is true?

• A)To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes
• B)To maintain separation between the personal and business accounting records, the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts
• C)To maintain more consistent records, it is best if the owner maintains a separate personal Checking account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts
• D)None of the above

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Definitions:

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, often used in calculating depreciation and lease payments.

Straight-Line Method

The Straight-Line Method is a way of allocating the cost of an asset evenly over its useful life, commonly used in depreciation and amortization calculations.

Depreciation

The methodical distribution of a physical asset's cost over its expected lifespan, representing deterioration or becoming outdated.

Depletion Expense

The allocation of the cost of natural resources over the period they are consumed.