Sally Observes That the Cash Account Is an Asset Account

question 4

Multiple Choice

Sally observes that the cash account is an asset account and has a debit balance. She also notices that inventories 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:

Basal Nuclei

Groups of neurons located deep within the cerebral hemispheres that are involved in the control of movement.

Circular Speech

A communication pattern where the speaker repeats ideas in a loop without reaching a conclusion.

Uncontrolled Rage

An extreme and uncontrollable emotional state of anger that can lead to aggressive behaviors and potentially harm to oneself or others due to a lack of inhibition or impulsivity.

Cerebral Hemisphere

The cerebral hemisphere refers to one half of the cerebrum, the largest part of the brain; the brain is divided into right and left hemispheres.