Sally Observes That 'Cash' Account Is an Asset Account and Has

question 14

Multiple Choice

Sally observes that 'Cash' account is an asset account and has a debit balance. She also notices that 'Inventory' account is an asset account and has a debit balance. Therefore, Sally comes into conclusion that all asset accounts have a debit balance. Which approach does Sally use in developing her theory about all asset accounts having a debit balance?

• A) Deductive reasoning
• B) Inductive reasoning
• C) Conceptual reasoning
• D) Conclusive reasoning

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Definitions:

Euphotic Zone

The upper reaches of the ocean, in which enough light penetrates to support photosynthesis.

Freshwater Wetland

A land area saturated with water, either permanently or seasonally, where oxygen-free processes prevail, primarily composed of freshwater marshes, swamps, bogs, and fens.

Estuary

A coastal area where freshwater from rivers and streams meets and mixes with saltwater from the ocean.

Oceanic Province

A specific, large region of the ocean that is characterized by its unique physical, chemical, and biological properties.