One of the following statements is true about the sample from a Balance Sheet shown here$$\begin{array} { l c r }
\text { Bank A } & 100 & \
\text { Bank B } & \underline { 200 } & \
\text { Cash: Net } & & 300 \
\text { Accounts Rec } & 400 & \
\text { Advances Rec } & \underline { 500 } & \
\text { Receivables: Net } & & 900 \
\text { Prepaid Expenses } & \underline { 300 } \
\text { TOTAL CURRENT ASSETS } & 1500
\end{array}$$
A)that Bank A and Bank B are group accounts
B)that Accounts Rec and Advances Rec are subgroup accounts
C)that Cash: Net and Receivables: Net are total accounts
D)that Prepaid Expenses is a group total account

Question

One of the following statements is true about the sample from a Balance Sheet shown here$$\begin{array} { l c r } 
\text { Bank A } & 100 & \
\text { Bank B } & \underline { 200 } & \
\text { Cash: Net } & & 300 \
\text { Accounts Rec } & 400 & \
\text { Advances Rec } & \underline { 500 } & \
\text { Receivables: Net } & & 900 \
\text { Prepaid Expenses } & \underline { 300 } \
\text { TOTAL CURRENT ASSETS } & 1500
\end{array}$$
A)that Bank A and Bank B are group accounts
B)that Accounts Rec and Advances Rec are subgroup accounts
C)that Cash: Net and Receivables: Net are total accounts
D)that Prepaid Expenses is a group total account

Quizplus · Accepted Answer

The underlined items (Bank B and Advances Rec) indicate that they are subgroup accounts within a larger category (in this case, Current Assets). The other options are not true based on the information provided.

One of the Following Statements Is True About the Sample