A Balance Column Account Is

question 88

Multiple Choice

A balance column account is:

• A)An account entered on the balance sheet.
• B)An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.
• C)An alternate name for the retained earnings account.
• D)An account used to record the transfers of assets from a business to its stockholders.
• E)A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

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Definitions:

Cash Increase

Refers to the rise in cash and cash-equivalent assets within a business or organization.

Cash Decrease

A reduction in the amount of cash a company has on hand, which can result from expenses, purchases, or withdrawals.

Income Statement

The income statement is a financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income or loss.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.