A Simple Tool That Is Widely Used in Accounting to Represent

question 168

Multiple Choice

A simple tool that is widely used in accounting to represent a ledger account and to understand how debits and credits affect an account balance is called a:

• A) Drawing account.
• B) Balance column sheet.
• C) Withdrawals account.
• D) Capital account.
• E) T-account.

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Definitions:

Selling Profit

The financial gain achieved from selling goods or services, calculated as sales revenue minus the cost of goods sold and associated selling expenses.

Initial Direct Costs

Expenses directly associated with acquiring or originating a new loan or lease, including commissions, legal fees, and internal costs that are incremental and directly attributable to the transaction.

AASB 16

The Australian Accounting Standards Board standard that specifies the principles for recognition, measurement, presentation, and disclosure of leases.

IFRS 16

An International Financial Reporting Standard that provides guidance on accounting for leases, requiring lessees to recognize assets and liabilities for most leases.