Multiple Choice
In the context of insurance applications, what are statements called that are made by the applicant and believed to be true?
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1. Introduction to Accounting
Useful Information
Multiple Choice
The first digit in the account number 520 indicates that the account is in the:
A
Expense accounts section
B
Asset accounts section
C
Liability accounts section
D
Revenue accounts section
Verified step by step guidance1
Understand the structure of account numbers in financial accounting. Account numbers are typically categorized based on the type of account they represent, such as assets, liabilities, expenses, or revenues.
Learn the common numbering system used in accounting. For example, accounts starting with '1' often represent assets, '2' for liabilities, '3' for equity, '4' for revenues, and '5' for expenses.
Identify the first digit of the account number provided in the problem. In this case, the account number starts with '5'.
Match the first digit '5' to the corresponding account category based on the numbering system. Accounts starting with '5' are typically associated with expense accounts.
Conclude that the account number 520 belongs to the Expense accounts section, as indicated by the first digit '5'.
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